For Enrique Cristofani, the price of the dollar is super high

September 28, 2018 - By Arturo Altman

Enrique Cristofani, president of Santander-Rio, the largest private bank in Argentina, shared yesterday morning, along with his colleagues, the first meeting of bankers with the brand new head of the Central, Guido Sandleris.

After that meeting, which had some protocol and a lot of numbers, Cristofani told Clarin that “the main problem of the Argentine economy, the deficit of public accounts, is in the process of being resolved next year”.

-We will not have deficit … but when will it grow again?

-If there is fiscal equilibrium, inflation will fall because one of the commitments is that it stops issuing and thus eliminates one of the great structural weaknesses of the Argentine economy. And it will change the international mood towards Argentina. This year the economy will fall 2.5% but recover in 2019. Therefore, it can not be compared to what happened in the crisis of 2002 when the economy fell that year 12%. It came out with a high dollar and in 2003 it grew 8.8%.

– How do you consider the current price of the dollar?

-There is an overshooting, it is very appreciated, which is bad for consumption but very good for export.

– Will inflation be tamed?

-Inflation will be high in the next five months and that affects consumption because it clearly beats wages. And also the income is affected by the recession, since overtime was eliminated in many cases.

-What are the sectors that will help to get the economy back on track?

– Clearly the agroindustry, energy, the knowledge industry, tourism and private construction. We must bear in mind that Argentines saved US $ 50,000 million in the last two years and something will be done with that money.

– How is the financial system?

-The system is divided half into individuals and the rest into companies. There is no default on the part of companies, except in a very specific case and the default reaches 6% in the case of individuals.

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