October 24, 2014
Kirchnerite deputy backs ‘pesification’
Deputy Agustín Rossi, the head of the ruling Victory Front caucus in the Lower House of Congress, yesterday expressed support for a bill to pesify all financial transactions while at the same time warning that consultations still have to be made with the national Government about its approval.
Rossi said that a pesification penned by pro-government Deputy Edgardo Depetri “is in line with us saying that Argentina needs to start thinking more in pesos and less in dollars, but we have to study it and consult it with the Executive Power’s economic area to see what consequences this might generate,” Rossi said.
Rossi insisted that “we haven’t made a decision yet” adding that “this issue is just starting to be analyzed.” Rossi added: “the model is Brazil, where it’s clear that they have an economy that thinks in reales and not in dollars.”
Rossi said yesterday that he spoke to real estate business leaders from Rosario and that they told him “that they already have a high percentage of operations, nearly 60 percent, that are done in pesos, especially those involving investments.”The ruling party representative insisted that the prevailing idea is that “savings have to be done in pesos.”
Depetri presented the bill on Thursday. The bill states that “all those agreements, contracts and/or pacts with the objective of modifying or affecting property of assets, personal or real estate properties, will be valid only if they are made in the obligatory and legal currency within the national territory.” The sweeping pesification would include rents and purchases of properties.
Depetri explained in a press release: “We are trying to recover the culture of our currency as a unit of value and an exchange instrument to cancel obligations contracted within our territory.”
“The international situation is currently characterized by great uncertainty, which is another element to encourage a complete support for the measures taken by different bodies of the national administration, aimed at de-dollarization of the Argentine economy,” he added.
“I suggest getting out of the 90s’ philosophy to recover a productive Argentina with full employment, consolidating our currency, defending its stability and competitiveness,” Depetri said.
The proposal was presented almost a week after Cabinet Chief Juan Manuel Abal Medina and Deputy Economy Minister Axel Kicillof denied the existence of an official plan for pesification, which they considered an “outrageous invention” generated by “malicious media operations.”
“We do not need it, this is not 2001,” responded Kicillof when he was asked about the possible pesification.
At least three different government offices are working on bills and/or resolutions to eliminate the US dollar as the sole currency to cancel different operations. In one of the cases, they are encouraging the repeal of the Convertibility Law article (currently in force) which authorizes the payment of obligations in US dollars.
Rossi also condemned the assault on a reporter of the pro-government TV show Duro de Domar. “As long as these aggressions are not sincerely and unanimously condemned, we run the risk that they will continue.”
Rossi said that “we have to regret that we have had four cases of attacks on journalists in less than 15 days,” as he referred to the assault of a Duro de Domar TV show reporter on Thursday during the anti-government protest in Plaza de Mayo.
Rossi also complained about the attack on reporters of the pro-government TV show 6-7-8 during a recent demonstration. “The intolerance of certain sectors against the press shows the distance that exists in these groups between what they preach and what they effectively do when it comes to freedom of speech. Rossi said that the opposition had not been emphatic enough in condemning the attacks.
Rossi minimized yesterday the pot-banging protests and said that “it’s not a political element that worries” the government. “For us it represents a sector of the society that does not agree with some of the government’s policies,” Rossi said.
Rossi said that in the ruling party “we are very sure of what we are doing and where we want to go.” Speaking during an interview with a radio station, Rossi also urged the public to take into account the global economic crisis. “There is a world with lots of complications and still we continue to grow,” he said.
Herald with DyN, Telam