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Sandler warns: the peso emission in December could be less "generous" than an agreement with the IMF

Monetary expansion, expected in December, may not be as high as originally agreed with the IMF. Guido Sandler, the head of the central bank, spoke yesterday in a closing speech to the United States Council at the G20 summit.

"Since we have exceeded the goals of our monetary base in recent months, we could do the same in December if we perceive that the demand for money is not what we expected", the official said.

The agreement with the Fund determines the goal of zero monetary expansion, but in December it becomes much slower. An increase of 60% is expected next month, which implies an additional $ 70,000 million on the market. This is due to the fact that demand for money is increasing at the end of the year, as companies have to pay wages, half a bonus, and now also a bonus.

Sandler wants to show the Center's steady behavior in terms of monetary control. The goal is very clear: to avoid sudden leaks of the dollar and, at the same time, to reduce inflation.

The currency movement, which at the beginning of the month reached almost 10% of the floor, reaching about $ 40, caused the BCRA to become more harsh. Over the past two days, it has taken over $ 60,000 million to stop the exchange rate escalation. Of course, it also indirectly halted Leliq interest rates, which were now just over 61%.

The BCRA manager was satisfied with the result achieved by debiting the new monetary aggregate scheme. And he announced it "high frequency" starts to decrease in November. It is estimated that this month, the index will be slightly below 3%, which is almost half that recorded in the previous two months.

In addition, he stressed that the most competitive exchange rate allowed the country to arrive in September "The first 21-month commercial surplus".

"Much remains to be done. This Central Bank, Sandler concluded, will be very cautious in the coming months, knowing the risks that his economy faces. We will only increase the monetary base, if circumstances permit. "

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