Massa’s plans and his presidential dream: IMF, Brazil, yuan and more controls

the minister sergio masa will seek to bring together a triple closing deals to get a mattress reserves at the central bankthat they allow shorten the reins of the economy, before the candidates of the Frente de Todos who will compete in the primary elections next August are known. It will be during a trip to End of May to Shanghai and another very close to that date to Washingtonin a fine geopolitical balance that rehearses between the two commercial giants of the world, USA and Porcelainand its most powerful regional partner, Brazil.

Massa’s play, confirmed to PROFILE by sources close to him, is marked by a new electoral scenario, with the ratification of resignation vice president election Cristina Kirchner and the expansion of your possibilities to compete for the presidential succession, with the backing of Kirchnerism. The plan is straighten macroeconomic variables to avoid new financial attacks and thus be able to face a competitive campaignamid the wear and tear that inflation and the exchange rate run followed his management since almost the beginning of the year.

Concerned about stability, the IMF evaluates the measures taken by Massa

“The objective is to be able to connect the closing of the new agreement with the International Monetary Fund, an increase in the swap from China and the pre-financing of exports from Brazil to avoid the use of dollars in bilateral trade. Everything will serve to increase the reserves of the Central Bank and to be able to pass the electoral period without major shocks”, said the source on the fifth floor of the Palacio de Hacienda, consulted by this means. In the first week of june Massa will force the recalibration of the agreement with the IMF to be able to get rid of a negotiation that stretched more than necessary, beyond the “winks of confidence” that repaired the economic team in the face of the latest measures, then known 8.4% inflation in April.

More yuan and a pre-financed trade with Brazil

On the minister’s agenda is the BRICS summit on May 31 in Shanghaiwhere an article of the bank of the financial institution will be modified to unlock the commitment that the president Luiz Inacio Lula Da Silva took over with Alberto Fernandez parachute kick for a year the payment of imports. At that same summit, Massa could bring an increase in exchange of currencies with China, which will allow use yuan to pay for imports from the Asian giant to sustain local productive activity and, in addition, will add to the reserves BCRA international

A family already needs more than 200 thousand pesos per month to not be poor in Argentina

Since the activation of the exchange and trade and political relations with China deepenedthere was explosion of inquiries from local banks to implement the payment of through the RMB, according to the original denomination of the Chinese coin. Market sources involved in foreign trade with the Asian giant PROFILE que “the goal of the people’s government of China is to make the yuan a hard currency of reference for payment in commercial exchanges”. For this reason, the information processes were accelerated and in the next few days the first commercial connection to use the clear correspondent.

This Tuesday, Massa and the president of the National Communications Entity (ENACOM), claudio ambrosinithey headlined the act Wi-Fi 6 for the announcement of adjusting the spectrum band for the use and development of WIFI 6 technology, with the presence of representatives of the Meta companies; Intel, Qualcomm, Amazon, Dynamic Spectrum Alliance (DSA), Broadcom, Cisco, HPE, Microsoft, Apple, Google, Federated Wireless. That definition opens the door to a direct investment of around USD 2,000 million, as speculated from the minister’s environment. But also, it allows you to balance the Government in the geopolitical bid for the insertion of Chinese and Americans in the debate for 5G. “We are going to rush a decision, because it means the entry of dollars, but, at the same time, a nod to the United States, in the midst of the IMF’s decision,” confided a source on the fifth floor of the Palacio de Hacienda.

Massa, the tightrope walker, part thousand

Economic measures will continue throughout the week, according to different sources from the economic team. is expected for this Thursday that the Central Bank adopts new definitions that affect finance and foreign trade, although its contents have not yet been disclosed. Massa’s plan is not to leave dead times that can fill the market with uncertainties and runs, which have allowed him, up to now, to test the firepower of the Palacio de Hacienda, with exchange rate tensions. It happens that the minister knows that an electoral proposal for a future government is conditioned by the current economic managementfull of anguish in the face of inflation and constant threats of devaluation.

The ratification of resignation electoral of Cristina Kirchner you widened the presidential road to Massa, although the battlefront remains open with President Alberto Fernández, who insists on the need to put several candidates on the line of debate in the PASO. The vice president’s letter, with criticism of the historical economic management of the national government, but without mentioning the situation, overwhelmed the head of the Palacio de Hacienda, who continues to gather signals towards his nomination. Some leaders in their environment highlight, in consultation with this medium, that “The relationship with CFK and La Cámpora is very good”which would give him a ceiling to sustain the presidential dream.

Cristina Kirchner conceded her “reasoned and thoughtful” decision not to be a candidate: “I will not be a pet of power”

There is, however, a ghost that registers the offices of the economic team: shortages. The minister’s decision to put the head of Customs, william michelas an inspector in the Central Market due as button shows the ferocity with which it will attack before new redials uncontrollable, approaching the feared double-digit number of the CPI for May. Companies promise to empty of products to the gondolas and stained glass windows, as far as he could find out PROFILE, if there is a kind of witch hunt. For now, the Ministry of Energy will change sustaining the path of rising fuel prices at 4%agreement that the Government had reached, but that had to be ratified before the claim of the oil companies for the loss of profitability due to the skyrocketing inflation.

AM / DE