Redrado: “The Central Bank no longer accumulates reserves”

Buenos Aires, September 25, 2012
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Former President of the Central Bank of Argentina (BCRA), Martin Redrado, said the agency “no longer accumulates reserves” under the current economic model of Cristina Fernandez.

“We do not accumulate more reserves. For Nestor Kirchner reserve accumulation was a mainstay,” said Redrado. “Of the 45,000 million (of reserves), 40,000 are in vouchers that are not ever going to be paid,” he added.

In this regard, he said that Kirchner had achieved “a budget and trade surplus, and a competitive dollar, which allowed more efficient production in the country.”

“That model is dead; we are replacing it with a model of progress and squeeze on the private sector. The current administration that “the reserves can not be touched” leads to no Argentine can buy dollar at the official exchange rate.”