The Minister of Economy, Luis Caputo, He went out to explain the tools that the government used to stop the escalation of the official dollar that approached the $ 1,300. He highlighted a liquidity absorption in the peso market and launched criticisms of banks in the framework of the recent exchange of Fiscal Liquidity Letters (LEFI).
“The Lefi were supposed to be exchanged for Lecaps. But the banks, fearful of losing daily liquidity, did not go with everything and preferred to make numerals,” the minister explained through his X account.
Luis Caputo’s explanation about official intervention
Last Tuesday the official dollar interrupted its upward streak and backed up up to $ 20, after having exceeded – for the first time – the $ 1,300. The brake corresponded to a strategy of the Central Bank (BCRA) that reactivated passive passes, an instrument that was not used from the length of the stocks.
In detail, the tool was used to absorb weights and Recalibrate short -term rates, which jumped to 36% per year. Everything happened in the midst of the Lefis disarmament complex, a measure that is part of the process of Transition to a new monetary policy based on aggregates.
The intervention was complemented with sales in the futures market, which contributed to putting a brake at least transitory, to exchange pressure.
In this regard, when they were consulted by what happened by a user in X, the minister replied: “The Lefi were supposed to be exchanged for Lecaps. But the banks, fearful of losing the daily liquidity, did not go with everything and preferred to make numerals.”
“When all fit all at the same time, it was clear that this was going to derive in A short rate declineso the Central Bank began to absorb that surplus liquidity. There it arose that the banks themselves asked us the LICI that we announced on Monday, “Caputo continued.
On this tender, he concluded: “The absorption via treasure tender is a better option, because they are pesos that go to 2020. But in the meantime, since those pesos liquidate next Friday, the BCRA absorbed 5 billion in the last 3 business days, being that the priority always was, is and will be, that it does not overcome pesos, in order to consolidate the disinflation process that we are transitting.”
The disarmament of the Lefis
The Ministry of Finance launched – last Monday – a Extraordinary tender aimed at Bankswith the objective of redeem the fiscal liquidity letters (Lefis) “That they will cease to exist this week,” for LECAPS AND BANCAPS. The measure occurs in a context of strong maturities in pesos that the Treasury must face in the next 45 days.
Through social network X, the Secretary of Finance, Pablo Quirnoannounced that they will be made available to the financial system letters and capitalizable bonds “Out of calendar”, within the framework of the disappearance of the Lefis.
In the case of LECAPS, they will be offered Devicts with maturities on July 31, August 15 and 29, September 12 and 30. On the other hand, the boncaps will be placed with expiration on October 17.
From Aurum values They pointed out that this early tender of LECAPS aims to channel the Bank liquidity surplus derived from the end of the Lefis.
In the market they estimate that there are still some $ 5 billion without defined destinationafter the last tender of the treasure in which the banks failed to absorb the entire broadcast. In parallel, the treasure must face maturities for almost $ 38 billion between the remainder of July and August. Despite the volume, analysts do not foresee greater difficulties for the finance team to renew those commitments.
According to data compiled by the Economist Federico García Martínez From official information, about $ 10 billion would be pending in maturities for the remainder of July, all at a fixed rate, and Another $ 28 billion in August, also mostly under that modality.
“With this call they will go out to put the floor at the rate”García Martínez said in dialogue with scope, adding that “at the time the call was known, the caution rate reacted in a favorable way.”
In previous experiences with maturities of this magnitude, the government resorted to exchange operations. However, this time, high demand is expected by banks, encouraged by the rates scenario in low and the search for new instruments where Place pesos, according to capital market sources.
Source: Ambito
