Sturzenegger: Dollar problem is 'inflation'

Banco Ciudad president Federico Sturzenegger said that the rise of the so called “blue dollar” is a result of Argentineans’ search of a saving shelter against inflation and warned more climbs could be expected if the government “continues to issue” pesos.

The problem, according to Sturzenegger, is the increase in the price of goods and serves and not the US currency arguing that its value jumps because “all the prices in the economy” do.

“People see this (situation) and look for a shelter so that (their) money does not lose purchasing power. Such shelter is goods or dollar. It has no roof, if the government continues to issue (pesos), the dollar will continue to increase. This is natural, we don’t need to ponder big theories,” the head of Banco Ciudad stated and said that “Argentina needs a competitive dollar that finds its value.”

Sturzenegger considers there is a “fiscal deficit” that the Executive Power “is financing by issuing” pesos and drew a parallel with Raul Alfonsín’s policies at the end of his administration.

“The Primavera plan ended with hyper (inflation) because the government did not understand the bottom line problem, the fiscal shortfall", he said but explained that Argentina’s current economic scenario is “strikingly better”.

“What happens in Argentina is unnecessary”, the Banco Ciudad president affirmed.