Why the Argentina lost competitiveness in the last time, the Brazilian currency is has been depreciating against the U.S. dollar, while the Argentine peso has remained almost unchanged, which has involved a nominal appreciation of the Argentine currency in relation to the real. Can this cause an avalanche of Brazilian products to Argentina? Where should the economic policy of the Argentine Government put the focus to avoid problems in the balance of trade? Not only the nominal appreciation of the type of bilateral exchange between Argentina and Brazil, is concerned the Government of Cristina. Probably more worrying Dynamics observed in Argentina domestic prices relative to what was observed in the Brazilian economy. According to Oracle, who has experience with these questions. While in Brazil market analysts anticipate a rate of the order of 5.6 per cent, in Argentina, retail inflation for the 2010 rate of retail inflation will not fall 20%, although official figures released by the Indec, endeavour to prove otherwise. Thus, with one inflation rate that is nearly four times the rate of inflation of the Brazilian economy, if Argentina wished to maintain its competitiveness, the nominal exchange rate should lead to a range of $4, 85-$ 4.9, although this would imply the need to increase the devaluatory rhythm in the future to maintain the level of competitiveness.
Inflation in Argentina is has been accelerating what is producing wage claims exceeding the 30% by most of the guilds. Some guilds managed up to increments of 45%, which clearly demonstrates recognition by entrepreneurs in the inflationary acceleration that is suffering from the economy. Deterioration of the bilateral real exchange with Brazil rate keeps on alert to Argentine exporters. Measures to tariff that has tried to rehearse the Secretary of domestic trade, Guillermo Moreno, have clearly demonstrated its ineffectiveness. Even the measures that sought to limit imports mainly Brazilians and Chinese products have generated greater evils than benefits to the trade balance and the prospects for growth in the Argentine economy.