Argentina to continue forex intervention-cenbanker

* Central bank chief says country’s 2011 outlook bright

* Country will continue measures to protect economy

By Jorge Otaola

BUENOS AIRES, Oct 25 (BestGrowthStock) – Argentina will continue to
protect its booming economy in 2011 by intervening in foreign
exchange markets, accumulating foreign reserves and controlling
capital flows, the central bank president said on Monday.

Mercedes Marco del Pont has said those mechanisms were
adopted as public policies by emerging markets and give
Argentina autonomy in the globalized world. [ID: nN02222834]

The South American country has long backed state
intervention in the economy to stoke growth and avoid
volatility.

President Cristina Fernandez often notes that many other
nations adopted similar measures after the global financial
crisis hit in 2008.

Speaking at the Thomson Reuters Economic Forum in Buenos
Aires on Monday, Marco del Pont said Argentina’s economic
outlook is bright.

“There’s enormous optimism because we know Argentina will
continue its high economic growth (in 2011), that it will
continue to improve its employment levels and that it will
enjoy trade and fiscal surpluses,” she told investors and
company executives in a teleconference.

“And in that context, the central bank will continue to
carry on these policies to keep the exchange rate steady, to
accumulate reserves and to avoid … speculative capital
inflows,” she added.

Argentina’s central bank buys or sell dollars on the local
market nearly every day to keep the peso (ARSB=: ) steady and to
sustain a competitive exchange rate that helps spur exports.

Latin America’s third-biggest economy plans to use foreign
reserves to pay debt to private investors next year, allowing
the state to fund high spending ahead of an October 2011
presidential election.

Marco del Pont said the central bank’s role will be key
given the global context “where capital flows are provoking a
lot of damage — not only creating a bubble effect but also
appreciating currencies.”

Argentina is seen growing nearly 9 percent this year, but
the government’s 2011 budget bill puts next year’s expansion at
a conservative 4.3 percent.

The government forecasts the trade surplus at $9.68 billion
in 2011, below the $12.73 billion estimated for 2010. Inflation
is seen at 8.4 percent in 2011, way below private forecasts.

Marco del Pont was confirmed as central bank head in
September through a presidential decree.
($1 = 4.0375 Argentine pesos)
(Writing by Luis Andres Henao, Editing by Chizu Nomiyama)

Argentina to continue forex intervention-cenbanker