Re: Argentina´s currency

[Paola Pecora <paolah_25@xxxxxxxxx>]

Argentina is **not** going to include the real in the
currency basket. Where did that came from.
Brasilians suggested it. Cavallo did not even consider
it.
Cavallo does TA? Not even this way can he affirm it.
How the heck does he know the dolar is going to reach
the euro by Feb 2002?
Funny.

Oíd mortales el grito sagrado!
Ohh! Juremos con gloria morir.

PP

--- Todeschini Federico
<todeschinisat@xxxxxxxxxxxxxxxxxxx> wrote:
>
>
> >As somebody else pointed out, though, trade is only
> a part of the
> >equation. That the real is not included in the
> prospective basket owes to
> >this, I think, and to the fact that the real is
> just too unstable, there
> >not existing any signal that the Brazilian
> government ia going to tackle
> >that problem in the short run.
>
> If Argentina is going to put the real in the basket,
> why doesn´t Mr. Cavallo float the currency instead.
> I think it will have the same result.
>
>
>
> >
> >On Wed, 25 Apr 2001, Todeschini Federico wrote:
> >
> >>
> >> The "new" currency board will function like this:
> As soon as 1 ? = 1 U$S the Argentinian peso will be
> worth half dollar plus half euro in a simple
> arithmetical sum.
> >>
> >> So the value of the peso won´t fluctuate with the
> values of the ? and u$s. This will give a bit of
> "competitive" gain, because the value of the changes
> in the value of the dollar against the ? will be
> compensated.
> >>
> >> The matter is that our larger tradable area, the
> Mercosur, won´t be included in this board so we wont
> be able to compensate the depresiation of the real
> >>
> >> Atilio Todeschini
> >>
> >
> >
>


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