The renowned economist and architect of the dollarization plan endorsed by LLA is set to undertake the challenging endeavour of "shutting down" the financial institution. According to the space leader, he appears to be content with his current state of affairs.
 |
| Emilio Ocampo |
In a significant announcement, Javier Milei, the presidential candidate of La Libertad Avanza (LLA), has officially confirmed his choice for the president of the Central Bank of the Argentine Republic (BCRA).
If Milei emerges victorious from the upcoming presidential elections scheduled for October 22nd, he intends to appoint economist Emilio Ocampo to this crucial position. This decision holds immense importance as it directly impacts the economic landscape of Argentina.
The individual in question is none other than the mastermind behind the dollarization strategy championed by the libertarian movement. They have been entrusted with the responsibility of overseeing the final stages of the credit institution's closure.
In an exclusive interview with El Observador 1079, renowned economist Milei disclosed his plans for the composition of his forthcoming government. With great anticipation, he unveiled that Emilio Ocampo has been selected as the chosen candidate for the esteemed position of president of the Central Bank.
With a resolute determination, he is poised to bring about its closure. His unwavering commitment to the task at hand fuels his mission to see it through to the end. In a recent statement, she expressed confidence in the economist's contentment with life following the potential appointment. Furthermore, she discussed the potential impact on task deadlines, highlighting the possibility of delays.
The closure of the BCRA is contingent upon the disarming of both the Leliqs and the base, as it is a crucial factor in the equation. In the realm of financial operations, the process of consolidating the Leliqs can be a time-consuming endeavour, often spanning a period of approximately three months. The base demands more time as it is intricately linked to the transactions you make. Ecuador's Ambitious Three-Month Plan: What's Hindering Progress? In a situation where small transactions are required, the issue of insufficient change becomes a pressing concern. In Argentina, the largest bill falls short of purchasing three dollars. According to the individual, there arises an operational issue in obtaining smaller denominations of currency to facilitate transactions.
In a recent statement, he emphasised that the duration of this process in Ecuador spanned a period of nine months. Furthermore, he made a projection, estimating that in Argentina, the entire conversion of pesos to dollars will be completed within a timeframe of approximately 16 months.
In contrast, he underscored the following: "In the specific instance of El Salvador, the initial circumstances differed significantly, leading to the decision to make it an optional measure." In a recent statement, he made a striking comparison, stating that it took a staggering 24 months. Furthermore, he went on to propose a solution akin to that of El Salvador. However, he emphasised that once two-thirds of the base is converted, the process will be concluded, and the currency will be dollarized instantaneously. The timeline for the resolution of the situation will ultimately hinge upon the actions and decisions made by the Argentinian people.
Furthermore, he emphasised that Argentines possess a staggering sum of over US$200,000 million in savings. He further highlighted that once this money is put into circulation, particularly through tax payments, the government will have a ready supply of foreign currency at its disposal, thereby facilitating the advancement of the dollarization process.
In a recent development, Ocampo has confirmed to LA NACION the constitutionality of dollarization, countering the remarks made by Horacio Rosatti, the president of the Supreme Court. Rosatti had expressed concerns about the constitutional boundaries surrounding the notion of dollarizing the economy.
In an exclusive interview with this publication, Ocampo has revealed an article he penned back in February of this year, wherein he systematically dismantles the arguments put forth by the magistrate. In a recent statement, the economist emphasised the need for a thorough evaluation of all criticisms, highlighting the importance of taking them seriously. Notably, he acknowledged that his expertise lies in history and economics rather than law. According to him, the majority of these criticisms reflect a certain level of confusion regarding the implications of dollarization. He further pointed out that these critiques often intertwine legal considerations with subjective value judgements, particularly in relation to the various functions that a currency must fulfil within an economy. Additionally, he criticised the inclusion of vague concepts such as "the value of sovereignty" in these arguments.
Ocampo, widely recognised as the architect behind the plan to adopt the dollar as the official currency, made a significant move last August by aligning himself with Milei's team. This decision comes in the wake of the liberal presidential candidate's remarkable performance in the recent PASO elections. In a remarkable display of intellectual prowess, the renowned libertarian author, alongside Nicolás Cachanosky, has recently unveiled a groundbreaking publication entitled "Dollarization: a solution for Argentina" (Editorial Claridad). This thought-provoking book has served as a source of inspiration for the libertarian in question, leaving an indelible mark on his ideological framework.
In a tweet shared on Friday afternoon, economist Ocampo expressed his gratitude for being chosen by Javier Milei to spearhead the closure of the central bank and the eradication of inflation. Ocampo referred to inflation as the most detrimental and capricious tax that has plagued the Argentine population for decades, leading to their impoverishment.
Source: Lanacion.com.ar