According to several analysts, Javier Milei’s statements against socialist ideologies during the Davos Economic Forum are generating repercussions that could harm Argentina’s foreign trade, especially in its relationship with China and Brazil. In order to expand this panorama, Canal E contacted the economist, Maximiliano Ramírez.
“I would rule out Monday because it was a holiday in the United States, so, There you already have a bullish dynamic in the domestic market“, commented Maximiliano Ramírez, who later added: “but on Tuesdays and Wednesdays, we are seeing a fairly growing dynamicparticularly the alternative exchange rates that reached $1,200 per dollar.”
The exchange rate begins to appreciate
Later, Ramírez stated: “The dynamics of importers, despite the BOPREAL that series 1 is being demanded, are seeing that this inflation and these inflation expectations for January and February, they continue with a fairly high dynamic”. He then stated that, “This leads to the official exchange rate beginning to appreciate.”.
The crawling peg of 2% is going to be short
“In the coming months, this dynamic of the 2% crawl that the Government is determining, unfortunately it’s going to fall short”, warned the interviewee. “This is justifying that importers start demanding dollars in the CCL at a slightly higher price which is what they could have in the future in the official exchange rate.”
What repercussions will what Javier Milei said in the Davos forum have?
On the other hand, the economist pointed out: “Getting into discussions or generating certain disagreements with countries with which we have needs, It’s not the best way to play.”. Along the same lines, he remarked that, “if we listen to the forum in Davos, this counterpoint that it made with socialist economies and at a time of very scarce reserves, It is not the most appropriate for an economy that needs many trading partners”.
In closing, Ramírez expressed: “The most important role will be played by the chancellordespite all the verbosity that Milei may have said on the forum, The bilateral meetings and agreements that the chancellor has will be fundamental when it comes to relating not only with political terms, but also with commercial ones.”