Overview

• Publishing a detailed critique, the former economy minister calls for declaring free convertibility of the peso and fully lifting the exchange clamp.
• He proposes allowing banks to intermediate in dollars and other convertible currencies on equal footing with the peso, with deposits and loans permitted in any convertible currency.
• His plan includes prohibiting monetary financing of the deficit and allowing central bank issuance only for reserve purchases or secondary-market operations.
• He blames the lack of reserve accumulation in 2024 and moves such as dismantling Lefis and stricter reserve requirements for interest-rate volatility and impaired credit.
• He says economic activity has stalled since March as borrowing costs jumped, and he criticizes reliance on a discretionary official rate and futures operations, warning of renewed inflation or a prolonged recession as the official rate nears the band ceiling and devaluation expectations rise.