The economic team arrived Wednesday afternoon in Washington to participate in the Spring Assembly of the International Monetary Fund and the World Bank. The first activity of the day was held by Guido Sandleris, the president of the Central Bank, who met with investors and told them that, in order to stop inflation, “the road is long, but perseverance will pay off”.
Sandleris and the Minister of Finance, Nicolás Dujovne, arrived in this capital, accompanied by the Secretary of Finance, Santiago Bausili; the Secretary of the Treasury, Rodrigo Pena, and the Vice President of the Central Bank, Gustavo Cañonero.
Shortly after landing, Sandleris presided at the Council of the Americas a closed-door meeting with businessmen and analysts interested in the Argentine economy and how the program agreed with the Fund progresses. He said that “the main objective of the Central Bank is to recover price stability, compared to the latest numbers of inflation we should not be discouraged, we know that the road is long, but perseverance will pay off,” according to the BCRA.
These types of meetings are always organized within the framework of the IMF Assembly and are often juicier than what happens inside the building on Pennsylvania Avenue where formal meetings take place between officials. The businessmen pose their questions to the ministers and they seek to provide confidence. Investors continue to look with optimism at the reforms of President Mauricio Macri, and understand that the monetary program seeks to attack inflation. But the uncertainty of the electoral scenario is reflected.
According to this correspondent Alberto Bernal, of XP Securities, who organizes one of these meetings, what investors today want to know is, for example, if the Central Bank is going to use the dollars so that the peso does not lose so much value; what the authorities can do to maintain control of volatility in an adjusted electoral scenario; what the government can do to boost the economy in the short term and if they will continue to respect contracts in dollars for the energy issue, among other issues.
Sandleris’s agenda continues today in the framework of the Assembly with a meeting with members of the G20 and also with David Lipton, the Fund’s executive vice director. The second of Christine Lagarde is considered a “hard” of the monetary regime and the most vocal advocate of currency exchange, which earned him the nickname of “Taliban” flexible exchange rate. Surely in the talks will arise the issue of the operation of the exchange rate and the resources of the Central Bank to contain the volatility of the dollar.
On Friday, Sandleris will have a meeting with Queen Máxima (regular presence in the Fund as a UN special adviser for inclusive credits) and on Saturday she will meet with her counterparts at the IMF.
Dujovne will have another meeting of investors, organized by the Treasury, this Thursday morning. Then he has meetings within the framework of the Assembly and a working dinner of the G-20, the group that Argentina still presides over until Japan takes the post. On Friday, Dujovne will hold bilateral meetings with his counterparts from Brazil and Saudi Arabia and on Saturday he will also meet with Lipton.
On Sunday morning, shortly before leaving to return to Buenos Aires, he will integrate a panel on “investment in people and infrastructure” with Lagarde and officials from Colombia, Ireland and the United Nations.