Economist Roberto Cachanosky questioned the effectiveness of Javier Milei's plan to lift the currency controls, stating that the Government faces a "serious problem" in this regard. According to Milei, the conditions would be met to end the restrictions in about five months, provided that inflation decreases.
Cachanosky challenged the Government's stance and that of the Minister of Economy, Luis Caputo, on the need for a reserve injection to move towards a currency unification. The economist highlighted that, since the announcement of the zero emission policy in July, fixed-term deposits have increased significantly due to the interest rate in the carry trade.
Moreover, Cachanosky compared the current situation with similar historical periods, noting that the exchange rate is artificially low, referring to past experiences during various Government administrations. In this regard, he raised the question of whether it is really necessary to continue postponing the lifting of the controls, according to the arguments presented by the authorities.
The economist emphasized that the Government is constantly adding new requirements to justify the continuation of the controls, such as the need to stabilize the Central Bank's balance, withdraw excess money from the market, and achieve convergence between inflation and the exchange rate. All these factors, according to Cachanosky, contribute to keeping the foreign currency artificially depreciated in the country.
In summary, given the uncertainty about lifting the currency controls in Argentina, Roberto Cachanosky warns about the possible obstacles and challenges that the Government faces in this process, expressing his criticisms of the measures and arguments presented by the authorities so far.
