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Milei rang the bell and spoke to investors on Wall Street: “We will release the restrictions when the inflation rate is zero” - Infobae
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Milei tocó la campana y habló ante inversores en Wall Street: “Vamos a liberar el cepo cuando la tasa de inflación sea cero”
El mandatario fue invitado por la New York Stock Exchange para honrar la celebración de 79° Asamblea General de las Naciones Unidas. En un discurso, repasó los ejes de su gestión antes de dar inicio a la sesión del día
www.infobae.com
September 23, 2024
The president was invited by the New York Stock Exchange to honor the celebration of the 79th General Assembly of the United Nations. In a speech, he reviewed the axes of his administration before starting the day's session.
By Roman Lejtman
Javier Milei Toca La Campana En Wall Street
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The Argentine president was chosen by the New York Stock Exchange (NYSE) to honor the 79th General Assembly of the United Nations
From New York - President Javier Milei visited the New York Stock Exchange on the occasion of his trip to participate in the United Nations General Assembly . The New York Stock Exchange decided to invite him, among all the participants, to honor the summit of the international organization that is being held a few blocks from the Wall Street headquarters . Before going up to the balcony where traditionally businessmen, investors and other prominent figures kick off the day's business, Milei gave a speech in front of investors and guests. Minutes later, he led the traditional ringing of the bell to open the stock market session.
Along with Milei, Foreign Minister Diana Mondino , Karina Milei , Minister of Security Patricia Bullrich , President of the Stock Exchange Stacey Cunningham , Minister of Economy Luis Caputo , the Argentine ambassador to the United States Gerardo Wertheim and presidential advisor Demian Reidel went up to the balcony that governs the trading floor.
At exactly 9:30 in New York, shouting “Let’s go Argentina” was heard, although the balcony did not have microphones, Milei rang the bell and the New York press conference began.
Earlier, during his speech in an auditorium at the Stock Exchange, Milei's words on Wall Street followed the usual script of, first, describing the inheritance with a bankrupt Central Bank , risk of hyperinflation, twin deficits, large debt maturities to come and the failed agreement with the IMF . Along those lines, he detailed the reforms he undertook with the Minister of Economy Luis Caputo , the president of the Central Bank Santiago Bausili and the Secretary of Finance Pablo Quirno . And he again stressed that fiscal discipline is his main asset.
"When we came to power, Argentina was basically on the brink of what would have been the worst crisis in its history. It combined elements of the three biggest crises in Argentine history," he said.
"I am not willing to sacrifice the fiscal deficit," he said.
Argentine President Javier Milei poses for a photograph as he visits the New York Stock Exchange (NYSE) to ring the opening bell in New York (USA), on September 23, 2024. EFE/EPA/Justin Lane
He also focused on the recent veto of the opposition's attempt to impose a new pension mobility formula through Congress . He went on to celebrate the progress made in combating inflation.
“We radically cut the money supply. And now wholesale inflation is 2.1% per month,” he said. “That is why Caputo will be remembered as the best economy minister in history (...) We are going to tame inflation, that is underway,” he added.
Later, he referred to the obsession of investors who expect the free movement of capital to aspire to a rebound of the Argentine economy: exchange controls. And he left several definitions regarding what is needed for the end of the exchange controls .
"When the inflation induced by the capital control program disappears, we will be able to get out of the trap without any problems , because they will no longer have bullets to load the weapons that can destroy macroeconomic stability," he said.
"We will release the restrictions when the inflation rate in the macroeconomic program is zero ," he added.
"Unlike all the other experiences that came out with the official exchange rate to the parallel rate, we are showing that it can be done from the parallel rate to the official rate (...) The day we finish lifting the restrictions, the excess demand for foreign currency will be closed and, therefore, the excess supply in the bond market will be closed," he commented.
“When we say that the gap will be closed from top to bottom, we are fulfilling our promise. Today the gap is being compressed to less than 10%,” Milei said, adding “the day we lift the restrictions, the excess supply in the goods market will be closed, there will be an additional expansion of economic activity and the excess supply of work will also be closed.”
"We will lift the currency controls when there is no longer any risk of destabilization, when the excess of pesos in the economy has completely disappeared. (...9 Finally, lifting the currency controls will allow the country to accelerate the accumulation of capital, which will lead to economic expansion, greater employment and better wages," he concluded regarding the issue of exchange controls.
