Argentina, beyond the initial euphoria that followed those ads, does not easy negotiations. With the Club of Paris, still not have reached agreement on how much is the amount to be paid (there is a difference of close to US $1,200 million), while the bondholders are suspicious and thats what you have said those who are part of the Argentina Republic savers Association (AARA). The search for a solution to the existing debt with the Paris Club and the holdouts, is only a necessary condition to gain access to international financial markets. But they are not the only ones to gain access to a reasonable rate. The control of inflation, transparency in the statistics and greater economic predictability are other conditions that markets impose him on the Argentina to return to accept it. Against the constraints imposed on the Argentina from the markets external, the possibility that a sensitive exchange rate devaluation occurs appears as something remote. So far, the best can do the Argentine Government in terms of competitiveness is working on price stability since the front comes the main deterioration of exchange-rate competitiveness.
At these times, it gives the feeling of a nominal exchange rate devaluation does not solve the problem of competitiveness of the economy. Call competitiveness through improvements in productive efficiency, elimination of distortions and better infrastructure, among other aspects. Cristina Fernandez de Kirchner’s Government should work in these aspects if it wants to improve the country’s competitiveness. We are again tomorrow, Horacio Pozzo Autor original and source of the article.