A steep devaluation of the peso is not possible, according to the head of the Central Bank Alejandro Vanoli. “We won’t solve anything devaluating, instead, we will make problems worse,” he added in statements to Radio 10.
Vanoli stated the fluctuations seen by the dollar futures are linked with speculative reasons and blasted those who try to “generate uncertainty” in the midst of the electoral race.
«There is no chance someone in the future pushes a currency devaluation,” the official said and warned “we have already known the consequences of what happened back in January, 2014.”
«Devaluation in Argentina would cause price hikes, a fall of real salaries, less competitiveness and recession,” Vanoli warned. “The road to solve competitiveness is the use of instruments instead of striking measures which make problems worse,” he added.
Source: Buenos Aires Herald