The economic crisis have very active to the Minister of Productive Development, Daniel Scioliand a large group of governors that these days organizes a commercial tour of the United States and Brazil. Among meetings and political negotiations they move with their eyes on topics such as the “stock” to the dollar to import, the need to increase exports and take care of reserves.
Son 3 of the key factors for the complex economic situation and the currency crisis with which the government of Alberto Fernandez and they are interrelated. Governors like the chaqueño Jorge Captainichthe entrerriano Gustavo Bordet and the Santa Fe Omar Perottiamong many others, these days they have fluid contacts with Scioli that point in that direction.
This Thursday, the minister travels to Brazil -where he was ambassador until Fernández summoned him to join the Cabinet- with two objectives: to deepen the management of “trade missions for the provinces” and “see if you can start working in payments with local currency” in bilateral business with the main commercial partner of Argentina, as specified in their environment to iProfesional.
To attend to this agenda, the minister will be accompanied by Bordet and by the president of the Argentine Industrial Union (UIA), Daniel Funes from Rioja. The presence of the governor of Entre Ríos is related to the first of these objectives and that of the businessman to the second, which appears to be the most difficult.
Scioli took a central role since his arrival in the Cabinet and now faces a common agenda with governors
“You have to generate jobs and dollars”It is the premise that Scioli repeats like a mantra among his collaborators and the one that explains the joint work that he began to show with the provincial leaders. Last week he participated in the assembly of Governors of the Great North where one began to cook international tour in search of opening exports and investments.
Economic crisis: what is the common agenda of Scioli and the governors?
At that meeting held in Formosa, the local governor, Gildo Insfrán, Capitanich and his peers Gerardo Morales (Jujuy), Oscar Herrera Ahuad (Misiones), Gustavo Valdés (Corrientes), Gerardo Zamora (Santiago del Estero), Gustavo Sáenz (Salta) , Raúl Jalil (Catamarca) and Ricardo Quintela (La Rioja), among others, maintained a contact by videoconference with the ambassador to the United States, Jorge Argüello.
there they agreed organize a trip to the United States for September in order to expand the supply of exports and seek investment for the region. In fact, it is not ruled out that any of them accompany Alberto Fernández on July 24when he leaves for Washington to meet with his American counterpart, Joe Biden.
“In addition to the United States, they also plan to visit Brazil. El Coqui (Capitanich) is coordinating and putting together that,” a leader who had access to that meeting slipped to iProfesionalwhich was also attended by the Chief of Staff, John Manzurand the Minister of the Interior, Edward “Wado” by Peteralong with other national officials.
Capitanich is one of the coordinators of the commercial tour they plan to do in the United States and Brazil
While the role of Argüello and Manzur is key to the trip to the United States due to the well-established contacts they both have in that country, Scioli’s is for Brazil. In fact, last Tuesday he received Capitanich and the subject was present. “We are going to organize all the missions that can be done,” they confirm in the environment of the Minister of Productive Development, who cultivated important relations in the neighboring country during his tenure as ambassador.
In this way the governors try to make their contribution to the solution of a key issue of the economic crisis such as the shortage of foreign exchange, which puts pressure on the reserves of the Central bank. Opening new markets to export and attract investment would not only be positive for the national coffers, but also for the leaders who fear the political impact of the economic crisis in their respective districts.
This leads them to move as fast as possible and under the same slogan as Scioli about the generation of jobs and dollars. That need is also behind the second objective of Scioli’s trip to Brazil, which aims to balance the trade balance with that country and in turn take care of the Central Bank’s fragile reserves but it is more complex than managing trade missions.
Provincial missions and taking care of dollars: the themes of the trip to Brazil
After leaving the embassy, the current minister was left pending a trade mission from the province of Entre Ríos. That’s why he travels accompanied by Bordeauxwith whom he will participate in a business round with businessmen from the province and the Brazilian state of São Paulo. However, the idea is organize more meetings of this type in the neighboring country for governors.
The currency exchange for trade with Brazil is a central theme of the minister’s visit to the neighboring country
In addition to the leaders of the Norte Grande, Santa Fe’s Omar Perotti signs up there. Sources close to the minister confirmed that this Wednesday both talked about the subject with an eye on investments for Santa Fe of the Marcopolo company, a Brazilian-owned firm that produces bodies and components for buses and buses.
But the issue that Scioli is most interested in regarding his visit to Brazil is the possibility of increase the use of pesos and reais in exports and imports between Argentina and its main trading partner.
The sources consulted by iProfessional indicated that this issue will surely be on the table in the meeting that the minister has planned together with Funes de Rioja and representatives of the Brazilian economic establishment. However, they recognize that it is not an easy task and that it will have to be “eventually also discussed with the banks“from both countries.
The intention is, on the one hand, to start balance the trade balance between the two countries, which until now is in deficit for Argentina (with a negative balance of around US$1,000 million) and at the same time ease the pressure that imports put on reserves. This second point, in turn, is what keeps Scioli in daily contact with the Minister of Economy, Silvina Batakis.
Scioli and Batakis have known each other for many years and now they are jointly evaluating what to do with the “stock” on imports
Is the “stock” made more flexible for dollars to import?
Sources close to Scioli confirmed to iProfessional that he is working with Batakis to try and selectively relax the call “stocks” to the official dollar for import operations.
In recent days, Scioli has held several meetings with entrepreneurs who demand greater access to dollars to import inputs necessary for production in the country. The official is trying to identify the most critical cases to “relax” that restriction.
As explained in the Ministry of Productive Development, The idea is to start with the release of payments for imports that were already shipped when the Government implemented this measure and that could not be cancelled.
The proposal is currently one of the central issues in the talks between Batakis, Scioli, the Secretary of Domestic Trade, Martín Pollera, and the Central Bank.
The restriction was taken during the management of now former Economy Minister Martín Guzmán at a time of strong outflow of reserves that was objected to by Vice President Cristina Kirchner, even in public before Alberto Fernández.
In the Productive Development portfolio, they hope to make progress in this regard and unlock some of these payments to avoid situations of shortages and, in turn, send a positive signal to the market. Same goal Batakis set for himself this week.
Start investing your money in cryptocurrencies and get Free Bitcoin when you buy or sell 100$ or more if you register in Coinbase