currency, which combined to the continuity of exchange rate depreciation in Argentina, led to the parity between the real and the peso to the current level of $1,798. Surely many will wonder why it has changed both the Brazilian real. The explanation lies in the monetary policy of inflation targeting that applies and which prevents an excessive intervention in the currency market, to concentrate on the objective of containment of inflation and not to send wrong signals to the markets. The void intervention of the Central Bank of Brazil has allowed a great variation in the nominal exchange rate caused by the strong entry and exit of capital in the country. The determination of intervening in the currency market, was taken by the Central Bank of Brazil, which has foreign exchange reserves exceeding $200 billion, a few months ago to try to contain the wide exchange rate variation, although such intervention is limited. While the Brazilian real is reaching less dangerous for the Argentine industrial levels, is not so true these you must feel so relieved now that currently they face great difficulties and threats that go beyond what happens to the real.
In the immediate term, much not affects Argentine industrialists the exchange rate situation neither Argentina nor Brazil since the crisis has generated a such effect at the global level that has limited the power of the exchange rate channel. It can attest to that the evolution of the exports of Argentine manufacturing of industrial origin (MOI), which have observed a strong inter-annual drop that accumulate for the month of March a low of 21% in interannual terms according to the Center for studies of the Argentina Industrial Union. In a more long-term vision (think for example in the beginning of 2010), the exchange rate matter for industrialists, but actually is not the nominal exchange rate to what matters to them, but the real exchange rate, this is corrected by inflationary developments in both Brazil and Argentina.