Sunday, February 5

Martín Guzmán: “Inflation is our priority”

At the same time, he added that another of the causes is linked to the financing of the fiscal deficit via issuance currency of the Central Bank (BCRA). In this sense, he clarified that from the Palacio de Hacienda they seek to continue developing the domestic capital market to increase the weight of financing through debt in local currency.

“Inflation, a widespread problem that affects the entire economy, is our priority, along with job creation,” he said.

On the other hand, Guzman highlighted the good performance of exports Argentina during the past year, and outlined as another of the goals of the economic team to guarantee the sustainable increase in sales to other countries, including agribusiness, energy and the knowledge economy.

According to INDEC, exports totaled some US$77,934 million in 2021, their highest value since 2012. Although there was a significant improvement in the amounts compared to the previous year, it is worth noting that the bulk of that record figure responded to the high prices of commodities in much of the period.

The higher foreign currency income from exports was not reflected in a proportional increase in BCRA reserves, due to several factors: the sustained intervention for several months to contain the prices of financial dollars, supplying the demand for imports, and payments for debt maturities.

Regarding the latter, Guzmán was exhaustive in pointing out that “today the main brake on the Argentine economy comes from the restriction of the balance of payments; the greatest tension comes from the debt with the IMF, due to the 2018 agreement and the strong maturities of US$19 billion this year and US$20 billion in 2023,” he said.

In this context, the minister once again put on the table the main difference between the Government and the body when it comes to reaching an agreement to renegotiate this enormous liability, which is the speed and path that Argentina must follow to reduce its deficit. fiscal. “We don’t want to penalize demand when the economy is recovering,” he said.