Government proposes to prevent Devaluation

The International Monetary Fund (IMF) recommended to devaluate the lempira’s anywhere from 5 to 6 percent, the government has at least three other options to convince this international organism that this measure is not necessary to restrain the devaluation and control the difference in the trade balance that also causes the diminution of the international reserves.

According to the minister of the presidency, Enrique Flores, the devaluation is a process Honduras has already passed, using it as a development instrument and the results have been obvious since there were no benefits in spite of the sacrifice of the population.

Applying the devaluation benefits the exporters while the rest of the population will be affected.

For that reason the proposal that was taken to the financial organisms are combined mechanisms by means of which we will attack the sumptuary consumption such as credit cards, luxury vehicles and unnecessary household items. Without closing our eyes to those indicators that say that there’s the need to take these measures, we also can’t take the easy way of devaluation we have already crossed without positive results, then what we are negotiating are solutions to prevent the sumptuary article consumption, but without a single measure like the devaluation.

Mean while, the budget president of the National Congress, Jose Azcona, said the devaluation was only a parameter raised by the IMF three months ago but it can be avoided.

The recommendation of the IMF says the terms of exchange are deteriorating and that will affect the economy that is something we have to stop, but stopping the inflation without devaluating, because devaluating will produce more inflation without controlling the exchange terms.

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