The economic crisis that crosses the country opens up all sorts of speculations. Part of the uncertainty lies in the absence of a firm decision by the International Monetary Fund to raise the dollars needed to complete the financial program in 2019. In recent days, President Macri has received telephone support from Germany, France and the United States.. An official from the northern country said this week that they are working to "bind the peso to the dollar & # 39; In recent weeks, the version of a potential dollarization of the national economy began to circulate.
Larry Kudlow, Director of the Economic Council of the United States, In statements to the chain of Fox News he put the discussion openly on the table."The Treasury is closely involved in this decision. The only way out of Argentina's dilemma is to set up a currency board. The peso is linked to the dollar. There is no money creation unless you have a dollar reserve. That worked in the 1990s, put inflation under pressure and ensured prosperity. The Treasury Department is in it, "the American official shot..
The statement aroused surprise in the specialized press and in many of the national policies. The economist Juan Valerdi I had anticipated this possibility. "The US Treasury is going to bank, and he will propose a dollar denomination and Argentina would become a safe place. For this there must be an even more brutal adaptation"He said in dialogue with INFOCIELO The support of the northern giant could generate two paths: the return to convertibility or a clear dollarization Valerdi confirms that each of the two roads is" nefarious "because they bring it with them "A loss of the total sovereignty of Argentina"
"Convertability means that for every dollar of reserves there is an amount in pesos which consists of the physical money on the street, the deposits in the payment accounts, the debts of the Central Bank and the National State, the deposits in the Savings Bank and the fixed conditions, "he explained. In this sense it indicates that "a value has been established that can not change and in this way the economy is frozen. This is the light version".
"The other path is total dollarization, that is, everything is transformed by the dollar, a fixed term or a salary, everything is a dollar, everything, dollars would circulate on the street, and the Central Bank does not have the capacity to exchange currencies. to give ", continues Valerdi. To implement one of these two measures, the creation of a law that passes Congress is necessary.
For Valerdi, this change in monetary policy is "a geopolitical decision by the United States to avoid the influence of Russia and China in South America." The economist concludes: "Each of the two roads is a betrayal of the home country and all Argentinians, and also removes powerful tools for economic policy."
What does the national constitution say?
Article 75 refers to the national currency, where the creation of a federal bank that emits currencies is indicated, point 11 indicates "seal money, its value and that of foreign currencies, and a uniform system of weights and take measures for the entire nation. "But it is in the point 19 where there is a controversial aspect, which states that work must be done in "defense of the value of the currency".
Ecuador, an example of dollarising
In 2000, and after a long economic crisis, Ecuador has officially accepted the US currency to date. For former president Rafael Correa, who left his post a year ago, with that measure the country committed a monetary suicide & # 39;
"For a developing country, the bottleneck, the crucial factor, the external sector, and the most important instrument for controlling that external factor, is called the exchange rate." And there, naive, absurd, Ecuador has resigned. He committed a monetary suicide", he explained to the Telesur chain.
The former Ecuadorian president obtained a master's degree in economics from the Catholic University of Leuven in Belgium and also studied part of his studies at the University of Illinois, in the United States. "Once the dollarization has been implemented, abandonment would cause economic, social and political chaos. So we have no choice but to support the dollarization, but we are very aware of the limitations. It is like fighting in the ring of globalization with a straitjacket. It would be much easier to have an exchange rate, to devalue the currency a little, to encourage exports, to limit imports and to correct the external imbalance, "he concluded.