Capitanich: “Some actions aim to generate a permanent destabilization”

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Argentina, January 31, 2014

In his daily communication with journalists accredited to the Casa Rosada, Jorge Capitanich again referred to the national economic situation, arguing that “psychological actions aim to generate a permanent destabilization.” He also added that there are “external speculative attacks” seeking to “affect the level of credibility of the government.”

Capitanich minimized the decline in central bank reserves and sought to generate a new bond of trust with exporters who have not yet sold their dollars on the market: “exchange rate convergence became compatible with the objectives of economic policy” he said.

He also indicated that the reserves have an income programmed of US$ s30. “The eventual decline in short-term reserves has nothing to do with the long-term projections” he added.

With an official dollar at $8 pesos, product of the flotation to which currency was exposed last week, the Government aims to restore confidence among exporters and importers. Its main objective is to avoid a recession and keep the level of activity.

The idea is to inject a dose of confidence into the economy and make exporters sell their dollars on the market and importers do not bring more products than the ones needed speculating on a possible rise in the currency.

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