Reserve Bank

It is not that the BCRA and Argentina do not wish to count on IMF assistance mechanisms. In fact, Redrado jointly with the Minister of economy Argentine, Amado Boudou, met with Blanchard to advance agreements with the IMF to access lines of financing. But beyond this, a country like Argentina may not be the luxury of not having a strong cushion of reserves to preserve economic stability, essential element for the growth and development of the country. But Redrado has not been the only one who defended the policy of accumulating reserves in the region. The Governor of the Reserve Bank of Peru, Julio Velarde, has made it clear the relief which accounted for himself and the conduct of monetary policy in Peru the existence of international reserves that allowed him to face turbulence and limit volatility in the markets. Also the Governor of the Banco Central de Colombia, Jose Dario Uribe, has assessed the benefits of the policy of accumulating reserves as a cushion mechanism of the crisis. What does not recognize even the IMF is that international reserves have played a fundamental role in countries such as the Argentina with almost void opportunities of access to emergency funding lines to cope with the crisis. The world sees the emerging even with mistrust by which any negative event either in Argentina or any other Latin American country, would have triggered destabilizing movements for these economies and even the region.

The international financial crisis, without reservations would have implicated undoubtedly to Argentina (and probably for most of the countries of the region), a foreign exchange crisis with consequences far greater on the real economy. To finish the article I think that Redrado message is representative of the message of emerging countries to the IMF: multilateral agencies have taken some steps in the direction correct but is a fairly arduous road to go before they finally become the true guardians of international financial stability. The IMF should first focus on global financial stability if you want to really help the emerging economies and on the other hand, must set aside your magical recipes and understand in depth the reality of each country to adapt the recommendations making them truly effective. Can you change the IMF and burn your old recipe book which uses for all countries alike?