Former Central Bank chief Alejandro Vanoli testified yesterday before Federal Judge Claudio Bonadío over the dollar futures contracts case that will have former president Cristina Fernández de Kirchner facing questions next week.
“The losses only took place after the seep devaluation of December, 2015,” Vanoli told the judge, accusing President Mauricio Macri of the massive losses that the Central Bank suffered due to those contracts.
Vanoli said Central Bank officers cannot be accused of favouring anyone with the sale as they don’t know who the contracts are being sold to.
The case is centered around a decision to sell hundreds of millions of dollars worth of contracts in 2015 betting that the official dollar price would remain significantly below what markets expected in 2016.
If the market value of the dollar ended up above what Vanoli sold them, the Central Bank would pay the difference in pesos. The contracts are now forcing the new head of the monetary authority, Federico Sturzenegger, to print billions of pesos in order to pay creditors, even after he negotiated a haircut. Former officers from CFK’s administration argue that Vanoli’s move was a legitimate economic policy aimed at managing market expectations and contain currency speculators. Economists argue that selling the contracts several pesos below what the market was offering for them risked massive losses for the Central Bank’s assets. Finance Minister Alfonso Prat-Gay was among those who testified a witness in court against Vanoli’s move last year.