As reported by Ámbito, the BCRA raised the rate of reference, the one paid by the Leliq at 28 days, by 2.5 points and took it to 42.5% annual nominal.
This is equivalent to an effective annual yield (TEA) of 51.9%, which takes it out of negative territory in real terms and places it in a neutral zone with respect to inflation.
From the entity led by Miguel Pesce, they pointed out that the purpose of the measure is to adapt to the goal of “inclining towards positive real returns on investments in local currency, and of preserving monetary and exchange stability.”
This decision is part of a package agreed with the Fund, which also includes a sharp reduction in monetary assistance to the Treasury (from 3.7% of GDP in 2021 to 1% in 2022), the promotion of policies to expand net exports and price and salary agreements.
Equilibra indicated that: “The last tenders in pesos have been characterized by the great attraction placed on instruments indexed to the CER (which increase the financial risk of the Treasury in the face of possible corrections in relative prices), and because Finance has not been able to kick too many more maturities beyond December. Despite the fact that instruments were tendered for 2023 and 2024, there is a clear preference for short-term bills and 70% of the debt issued so far in 2022 expires this year,” they remarked from Equilibra.
“In order to attract fresh funds from the private sector and, in turn, increase net financing in fixed-rate instruments and start extending terms, we believe it is necessary for the Treasury to adjust the yields on its discount bills. With a TEA of around 55%, the LEDES could become even more attractive than the inflation-adjusted bills offered by the Treasury (the LECER due in October paid 0.9 points below the CER in the last auction),” he considered.
Source: Ambito
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