Last week the Central Bank again intensified the “cepo”, cutting import payments and making the operation of alternative dollars even more restrictive. You could see it coming. The sale of reserves was unsustainable, and it did not seem very likely that the government would bless a devaluation before the November 14 elections.
A Driverless Private Credit
-Domestic credit to private sector stopped falling in the third quarter, but it is hardly the beginning of a dynamic that reverses a process of long decline.
-The fiscal dominance of monetary policy imposes a logic that ends up diverting loanable funds -In 2022 and onwards, this dynamic will continue if it is not aimed at financing the fiscal deficit in a genuine way, that is, through the local or international capital market.
Econviews-Weekly-October-13th-2021
