Now if only the police can raid the Federal Reserve…
This week, the Argentine police raided the trading desk of the nation’s central bank, according to Reuters. This comes as a prosecutor alleged that Alejandro Vanoli, the central bank president, ordered the monetary regulator to sell United States dollar reserves at a rate far below that on the international futures market.
The prosecutor was able to present his case by a complaint from two opposition legislators who said the suppressed price by the bank that sold the dollar futures had led to an immense loss for the government.
For those who haven’t followed Argentine economic news, the central bank regularly sells dollar futures to improve the peso and reduce fears of devaluation.
The central bank released a statement saying that it had not conducted anything unscrupulous and blamed the events on a political witch hunt against Vanoli prior to the upcoming presidential run-off election.
“The bank reiterates that its interventions in the futures market have been absolutely transparent. The complaint is unfounded and seeks only to make an impact on the election,” the central bank said in a statement. “The bank will continue with its policy of guaranteeing financial and exchange rate stability.”
It added that its sells dollar futures that match the projected exchange rate in outlined in the 2016 national budget, approved by the congress.
When the police operation took place, the bank noted that it had provided all of the information and documents to the authorities as per the order of a federal judge.
Vanoli, a Christina Fernandez-appointee, has vowed to stay until the end of his term in 2019, even with all of the allegations made against him.
Nope! All just a meaningless show of force for public political effect alone. Higher powers that own and hire Police determine the games being played for largely crowd sourcing reactionary effect.