Cristina Kirchner's chicane due to the decision of the Central Bank

Cristina Kirchnerthe former president of Argentina, has returned to the center of attention after her recent comments about the Central Bank’s decision not to lower the interest rate. In a series of publications on his social networks, Kirchner mocked the measure and harshly criticized the Government and the Central Bank for maintaining the interest rate at a nominal 32% annually.

The Central Bank’s decision not to reduce the interest rate came after the Government announced a decrease in the rate of devaluation of the peso to 1% monthly. This measure was seen as an attempt to stabilize the economy and control inflation, which reached 2.7% in December, slightly higher than the 2.4% in November. But Cristina Kirchner It doesn’t give the right to that idea.

Cristina Kirchner's chicane due to the decision of the Central Bank

However, Kirchner He was quick to express his discontent with this decision. On his

With this statement, the former president referred to the financial strategy known as “carry trade”, which consists of taking advantage of interest rate differences between two currencies to obtain profits. In this case, Kirchner suggested that the Central Bank’s decision favors investors speculating in the Argentine peso, rather than benefiting the real economy.

Cristina Kirchner's chicane due to the decision of the Central Bank

The “carry trade” has been a common practice in Argentina, where investors seek to obtain returns in pesos that exceed the devaluation of the dollar. By maintaining the interest rate at a nominal 32% annually, the Central Bank ensures that investments in pesos remain attractive to speculators, which, according to Kirchnerperpetuates a financial system that does not benefit the majority of Argentines.

Kirchner’s criticism was not limited to the Central Bank’s decision. He also questioned the Government’s economic policy in general, suggesting that the measures adopted are not sufficient to address the structural problems of the Argentine economy.

Cristina Kirchner's chicane due to the decision of the Central Bank

Devaluation

In particular, he noted that reducing the pace of peso devaluation to 1% per month is not a long-term sustainable solution and that deeper reforms are needed to stabilize the economy. The reaction of Kirchner has generated an intense debate in the media and among economic analysts.

Some agree with his criticism and argue that the Central Bank’s policy favors speculators and does not address the fundamental problems of the economy. Others, however, defend the Central Bank’s decision and maintain that maintaining the high interest rate is necessary to control inflation and avoid further devaluation of the peso.

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