Argentine Finance Minister, Caputo says dollar doesn't float due to fear of communism

[lemonade]

When you think you have heard it all.

Caputo says dollar doesn’t float due to fear of ‘communism’​

Caputo says dollar doesn’t float due to fear of ‘communism’ - Buenos Aires Herald

The economy minister pointed to Peronism in a response to critics who posit that the peso is artificially overappreciated

buenosairesherald.com

 

[Nasdaq]

Socialist/communist governments are the ones that usually control currency exchange rates and don't let them float free. Granted Milei is stuck between a rock and a hard place.

Funny this communist narrative from Argentina. Saw this article online and laughed when Milei is telling New Yorkers to flee NYC now that the "communist" Mamdani is elected mayor.

President Javier Milei tells New Yorkers they are ‘warmly welcome’ in Argentina to flee Zohran Mamdani’s ‘communist party’ - The Times of India

US News: Argentinian President Javier Milei extends an invitation to New Yorkers. He suggests they can find refuge in Argentina if they wish to avoid a communi

timesofindia.indiatimes.com

 

[ElQueso]

Socialist/communist governments are the ones that usually control currency exchange rates and don't let them float free. Granted Milei is stuck between a rock and a hard place.

Funny this communist narrative from Argentina. Saw this article online and laughed when Milei is telling New Yorkers to flee NYC now that the "communist" Mamdani is elected mayor.

President Javier Milei tells New Yorkers they are ‘warmly welcome’ in Argentina to flee Zohran Mamdani’s ‘communist party’ - The Times of India

US News: Argentinian President Javier Milei extends an invitation to New Yorkers. He suggests they can find refuge in Argentina if they wish to avoid a communi

timesofindia.indiatimes.com

The typical New Yorker couldn't hack it here. They would leave in frustration with dealing with daily nightmares. Dealing with getting a DNI, terrible banks here, dog crap all over the street and on and on.

 

[VINO]

Milei is just sucking up to Trump. Monkey see monkey do.

 

[TonyTigre]

After actually reading the entire article, Caputo sounds reasonable and realistic. As I have stated in another post, sometimes we need to fight market manipulation with market manipulation. No one can say whether the peso is fundamentally overvalued or not at this point. Getting rid of the bands now would only allow one side to manipulate the exchange rate unchecked, which would create economic and political instability that would in turn lower the fundamental value of the peso. With a growing economy, a stable business friendly government, a balanced budget, and a trade surplus, it's reasonable for the peso to strengthen fundamentally against the currencies of other countries with slower growth, large budget deficits and large trade deficits.

 

[Piranha]

After actually reading the entire article, Caputo sounds reasonable and realistic. As I have stated in another post, sometimes we need to fight market manipulation with market manipulation. No one can say whether the peso is fundamentally overvalued or not at this point. Getting rid of the bands now would only allow one side to manipulate the exchange rate unchecked, which would create economic and political instability that would in turn lower the fundamental value of the peso. With a growing economy, a stable business friendly government, a balanced budget, and a trade surplus, it's reasonable for the peso to strengthen fundamentally against the currencies of other countries with slower growth, large budget deficits and large trade deficits.

Sooner or later you will know if it is fair or not. Tony is correct when he says no one knows but the same is true that Caputo and Milei don't know either. If you listened to Milei before when he said the US dollar was going to fall like a piano you would have lost a lot of money.

Argentina probably won't float for a while. Forever here it has been better to hold dollars vs. pesos. Doubt that will change any time soon.

Dólar: "Argentina no está preparada" para que el tipo de cambio fluctúe libremente dice un hombre clave de Caputo

El asesor y director del Banco Central, Federico Furiase, aseguró que otros países con planes de estabilización exitosos mantuvieron las bandas "por varios años".Anticipó que el Banco Central volverá a comprar reservas pero dijo que se hará "con prudencia".

www.clarin.com

 

[ElQueso]

After actually reading the entire article, Caputo sounds reasonable and realistic. As I have stated in another post, sometimes we need to fight market manipulation with market manipulation. No one can say whether the peso is fundamentally overvalued or not at this point. Getting rid of the bands now would only allow one side to manipulate the exchange rate unchecked, which would create economic and political instability that would in turn lower the fundamental value of the peso. With a growing economy, a stable business friendly government, a balanced budget, and a trade surplus, it's reasonable for the peso to strengthen fundamentally against the currencies of other countries with slower growth, large budget deficits and large trade deficits.

Not sure I agree with this. A currency should just trade free to determine what it is worth. Until it does you would convince me that it is not overvalued. Endless bailouts every 6-12 months isn't the way.

 

[Bingo]

After actually reading the entire article, Caputo sounds reasonable and realistic. As I have stated in another post, sometimes we need to fight market manipulation with market manipulation. No one can say whether the peso is fundamentally overvalued or not at this point. Getting rid of the bands now would only allow one side to manipulate the exchange rate unchecked, which would create economic and political instability that would in turn lower the fundamental value of the peso. With a growing economy, a stable business friendly government, a balanced budget, and a trade surplus, it's reasonable for the peso to strengthen fundamentally against the currencies of other countries with slower growth, large budget deficits and large trade deficits.

But @TonyTigre this is a bit flawed logic isn't it? They will keep saying they aren't ready to float. Today Argentina supposedly has fiscal balance, slowing inflation, monetary order and you are arguing we can't float to find the true rate. But 2 years ago with triple digit inflation, fiscal deficit and chaos they had to get rid of the Central Bank.

By your logic when do we float? What will it take? Everyone seems to be saying the peso is overvalued except you and a few people. I don't buy that.