Javier Milei, an economist at the University of Buenos Aires, has been more cautious in his approach to getting out of the stocks compared to other economists. While he promised to do so quickly, he has not followed through on that promise. This has left many entrepreneurs and CEOs wondering when the restrictions will be lifted. They are eager to have more flexibility in buying dollars for imports and conducting business without the constraints of the current regulations.
In contrast, Daniel Artana, an economist at Fiel, explained what Mauricio Macri did in December 2015 by stating that he got out of the stocks the day the newspapers reported that he did. Macri announced at a press conference, through Alfonso Prat-Gay, that he was leaving behind regulations and norms, allowing people to buy foreign currency the next day. This move was significant as it signaled a departure from the restrictions put in place during Néstor Kirchner’s presidency. It set the tone for Macri’s economic policies and was well-received by the public.
The government has hinted at a potential delay in lifting the stocks due to various reasons such as concerns about financing rates and sustainability of government debt if rates turn positive. Economists have also highlighted the benefits that they have derived from maintaining control over foreign currency exchange rates in terms of financing and liquidity. However, several studies have supported the argument for a gradual release from the stocks, emphasizing caution and careful planning to avoid potential negative consequences.
Economists believe that a phased approach to lifting restrictions may be prudent course of action to ensure stability and avoid disruptions in financial markets. Overall, releasing from control over foreign currency exchange rates is a delicate balancing act that requires careful consideration of various economic factors. The decision must weigh benefits against risks before taking any decisive action.
In conclusion, Javier Milei’s approach to getting out of stocks contrasts with Daniel Artana’s approach during Mauricio Macri’s presidency in 2015. While there is pressure from businesses and public opinion for quick relief from controls on foreign currency exchange rates, it is essential for governments to proceed with caution before taking any decisive action that could disrupt financial markets or create unintended consequences such as destabilizing their economies.
