Vladimir Werning, vice president of the Central Bank of the Argentine Republic (BCRA), presented on March 5 at the annual conference organized by Inviu in Buenos Aires. His presentation was titled “Argentina: reducing external vulnerability requires boosting domestic savings as a source of financing for private investment.”
The topic is significant as it addresses Argentina’s ongoing efforts to stabilize its economy and reduce reliance on external financing. Werning outlined a stabilization program aimed at eliminating all sources of external vulnerability.
Key points from his presentation included proposals to eliminate the fiscal deficit, adopt exchange rate flexibility, accumulate international reserves, honor contracts and net debt payments to lower country risk, prioritize foreign direct investment as a medium-term source of external financing, and encourage increased private savings within Argentina while repatriating savings held abroad.
Werning also discussed measures to support private investment without creating external imbalances. These include restoring price stability to anchor inflation expectations among Argentine savers, removing financial repression to foster free markets with positive real returns for savers, offering tax incentives to facilitate the repatriation and formalization of Argentine capital held abroad, advancing currency competition frameworks that allow intermediation in both pesos and U.S. dollars, and developing capital markets and banks to expand options for Argentine savers while lowering costs.
The event highlighted ongoing discussions about economic reforms in Argentina and the importance placed by central bank officials on internal savings as a foundation for sustainable growth.
