Minister Kicillof rules out devaluation of peso

Economy Minister Axel Kicillof questioned sectors pushing for a peso devaluation.

The government will not pursue devaluation because Argentina needs to “give certainty,” Economy Minister Axel Kicillof affirmed when queried about the depreciation of Brazil’s currency that this week plunged to its lowest level in more than a decade.

“They say that Brazil devalued (its currency) by 25 percent since July and Argentina only by 6 percent since that month, but they do not take into account that we had a slip of more than 20 percent in January (2014) so we are actually in a 30 percent,” Kicillof told reporters today echoing news about the monetary scenario in the neigbouring country.

Facing a “Brazil that devalues violently,” Argentina must “avoid instability" and "give certainty,” the minister assured questioning opposition leaders and private-sector analysts who have been demanding the federal government to consider the decision by Brazilian legislators throwing out a presidential decree that would have raised taxes and cut expenses, reducing that country’s deficit and inflationary pressure.

“Many are asking for devaluation. Many candidates talk about a sharp devaluation in December,” Kicillof pointed out saying the Cristina Fernández de Kirchner was “responsible” and will not make such a move.

“If there is no devaluation, they say there is an exchange rate lag; but if there is a devaluation, it is wrong to devalue,” he insisted and denied also plans to be part of an electoral formula ahead of the PASO primaries and general elections in August and October respectively this year.