Friday, 18 December 2015. The Minister of Treasury and Finance, Alfonso Prat Gay; announced last Wednesday in a press conference that from Thursday the Argentines will be able to buy dollars again without restrictions. This news made very happy to the population, since during the past four years the acquisition of dollars was subject to severe limitations imposed by President Cristina Kirchner; in order to slow down a flight of hard currency, but that in the end, it had a partial scope at the expense of a paralysis of various sectors of the economy, leading to many companies of foreign capital to reduce their investments.
For example, the housing market that depends exclusively on contributions in dollars, collapsed. Meanwhile, many industries that had as raw material imported inputs, closed; and agricultural exporters decided to retain their items with which the country lost one of its main sources of foreign exchange.
For all these factors, different types of dollar were generated; among them is the so-called “blue”, which refers to that is listed on the black market. Although this categorization is illegal, was recognized by the Government and even the Central Bank intervened to prevent the increase of its value.
So this new economic reform will allow small investors, importers and exporters; operate again with the currency most widespread in the world. However, as some economists predict, this measure could trigger a sharp devaluation that would affect the purchasing power of the most vulnerable sectors of the population, as indeed it has already happened in other Latin American countries.
The fact that the Central Bank is currently with low levels of reserves, 24,000 million dollars to be exact, could bring as immediate consequence a sharp rise in the value of the dollar. However, in the following four weeks is expected to have additional funds that go between the 15,000 to 20,000 million dollars; that will come from greater of foreign exchange settlement by the export of cereals, financing of international banks and an agreement with the Central Bank of China to convert into dollars part of the reserves of the Central Bank of Argentina.
Despite this, the Minister Gay said that the Government is pleased to announce the end of the exchange system in Argentina. From now on anyone who want to export or import, will be able to freely do it; and there will be no follow up for those who want to buy dollars, whatever be their reason.
Following this report, and with a much uncertainty; to the Minister was asked on how much would be the value of the officially dollar, to what Gay responded that he did not know and had to wait until Thursday. But, he assured that there will be a single type of change and that will be established as a maximum of two million dollars per month for legal and physical person, for purchasing dollars in hoarding.
ALFA