By LIC. Aldo Abram, director of the Center for research institutions and markets of Argentina (PRESIDIAL). Economy Minister launched a Fund of the bicentennial for the debt relief and stability, which will be constituted with something more than u$ s 6.5 billion of free availability’ of Central Bank reserves. Aside from the dubious constitutionality of the DNU which gave origin, we believe, at least, it would be reasonable to rename it to this Fund. To endorse this proposal, we have the following arguments: as the President said, the reserves are of all Argentines. They are in the Central Bank to defend the value of the peso, which we treasure and charge our incomes and our savings, which are in the financial system. The mistake is to think that these currencies are the Government and you can use them to spend, since it implies weaken the BCRA in its ability to ensure that it can carry out its mission. Free availability reserves.
This concept was invented in early 2006 to be able to use them for payment the debt with the IMF and is defined as the currencies of the BCRA leftover necessary to substantiate the total number of base money at the current exchange rate. From the economic point of view do not have any livelihood, since assets in foreign currency of the body should endorse their financial liabilities total and not just a part. This advise it when you created this account and, also, note that naming them ‘freely available’ was an invitation to use them for anything. In fact, at first, they only served to redeem maturities with international agencies and, now, its use extends to any instalment in currencies. Fund to increase public spending: since money is fungible, this decision confirms that the fiscal solvency is not recompose. During 2010, the State’s revenue should increase by the recovery of the internal and external demand, the increase in inflation and the rise in international prices.