The Deputy Governor of the BCRA, Vladimir Werning, presented: “Argentina: Reducing External Vulnerability by Funding Private Investment with Higher Domestic Savings,” at the annual conference held by Inviu. The presentation was delivered in Buenos Aires on March 5.
AGENDA
The stabilization program seeks to eliminate all the sources of external vulnerability
• Eliminating fiscal deficit (public sector dis-savings)
• Adopting FX flexibility (facilitating relative price adjustments)
• Purchasing FX reserves (consistent with monetary equilibrium)
• Honoring contracts and net debt repayment (to reduce country risk)
• Prioritizing FDI (medium-term source of external financing)
• Lifting private sector savings, retaining savings on-shore and repatriating overseas savings
Boosting savings to fund private investment without creating external imbalances
• Pursuing price stability (anchoring Argentine depositors’ inflation expectations)
• Eliminating financial repression (fostering free markets with positive real returns for Argentine depositors)
• Offering fiscal incentives (facilitating Argentine depositors’ capital repatriation and formalization)
• Advancing currency competition framework (allowing the intermediation of Argentine depositors’ savings in ARS and USD)
• Promoting the development and reduction of costs for the capital market and banks (providing more options for Argentine depositors)
Presentation by the Deputy Governor of the BCRA at the annual Inviu Kick Off (PDF)
