Former head of the Central Bank, Martín Redrado blasted Cristina Fernández de Kirchner’s administration today for the constraints the national government has been placing on dollar purchases.
For Redrado, the restrictions are going to put the economy in a «dead-end situation.»
«This administration believes that repression and restriction will help the peso movement in the economy, but it is all wrong,» Redrado remarked.
«To the contrary, restrictions generate a vicious circle boosting the parallel market,” he said in an interview this morning to a local radio station.
“The restriction regime unveiled the model’s main weaknesses; the lack of dollar reserves to cover up the lows of the economy,” the former official indicated.
According to Redrado, only a four-year goal oriented plan will bring in the dollars the country needs. “The country’s reserves can be wasted. The future will bring us even further restrictions and those will deepen the economic standstill,” Redrado emphasized.
Since last year, the government has been placing limits on the dollar exchange market, the amount of US dollars Argentine citizens are able to purchase on the country’s financial institutions and also abroad.
Source: Buenos Aires Herald