July 22, 2014
Reserves accumulation policy 'virtuous'
The Cabinet Chief has defended the government’s debt policy with Argentina using the Central Bank’s international reserves to pay debt, considering the Kirchnerite administration has honoured payment commitments “it did not incur in” and “has not incurred in anymore usury-like debts” either.
“If we had not paid a debt this government did not incur in, we would have now 73 billion dollars in reserves,” the head of ministers stated in a press conference held this morning at the Casa Rosada presidential palace, adding that in the 90’s “Convertibility era” - a system Argentina exit from with a historic default and a major social, economic and political crisis in 2001, with the peso pegging one-to-one peg to the US currency for a decade-, reserves accounted for 21.9 billion dollars. Over the past decade, the South American country, he said, has managed to accumulate an average of 36 billion dollars.
"The accumulation of reserves has been a virtuous policy because it allowed to create an anti-cyclical policy. We used reserves to pay debt that other governments incurred in, fueling production, jobs and we did not incur in anymore usury-like debts,” the official stated.
Regarding the historic surge of the so called “blue dollar” in the informal market, Jorge Capitanich said Argentina has a “free and only exchange market.” “There is a debate over the issue of the blue dollar. I would like to recall that in Argentina there is a free and only exchange market established by the Central Bank and there are the transactions that have to be,” he warned to say the country’s financial market is “solvent.”