Luis Caputo prioritizes lace and discards direct intervention to handle liquidity. Record maturities are coming.
Debt maturities in pesos for $ 41 billion are coming between the remainder of July and August, and the dollar He knows it. Therefore, the Central Bank of the Argentine Republic (BCRA) chose to reinforce liquidity control through regulatory measures instead of direct interventions in the market.
The “A” 8281 communication, published on July 17, ordered to increase the minimum cash requirements for deposits in sight, common money market investment funds and stock markets in pesos from August. The disposition was extended to passive passes through communication “A” 8286, officialized this Thursday. This strategy seeks Align interest rates between financial instruments, reduce development and contain volatility After the elimination of fiscal liquidity letters (LEFI) on July 17.
The Lefi exit left the banks with a excess liquidity which pressed the interest rates and fed the increase of the dollar, which exceeded $ 1,300. The communication “A” 8281 aims to balance the conditions between stock market and passive passes, preventing the stock market being more attractive to collection of funds. When these operations are more expensive, the BCRA seeks to moderate the demand for funds in these markets and, marginally, interest rates, contributing to stabilize the exchange market.
Historically high maturities are coming
The treasure faces maturities of $ 11 billion at the end of July, $ 19 billion on August 13 and another $ 11 billion on August 27, which has intensified the issuance of capitalizable letters (LECAPS) to absorb surplus liquidity. However, the transition from the Lefis has generated tensions, since banks, accustomed to depositing daily surpluses in the BCRA in exchange for a rate, now face difficulties in managing intradiarc descalces. This has led the banking sector to request greater flexibility, such as the possibility of using daily surpluses to meet lace the next day or expand its exposure to LECAPS.
From the Palace of Finance it is sought that the banks adopt a more orderly and proactive management of their liquidityafter – they have a “lack of initiative” in the days before the end of the Lefis. Official sources point out that the Ministry of Economy intends that financial entities prioritize financing to the private sector, channeling surpluses towards credits that stimulate consumption and economic activity, instead of depending on BCRA instruments.
Dollar and rate float
For its part, the BCRA argues that it is not necessary to intervene directly in the weights market or establish a corridor for the passes, trusting in the self -regulation of the system under a floating rate and dollar scheme. This position, aligned with the market “reputation” that seeks to consolidate the government, implies that monetary authorities prioritize structural measures, such as lace adjustment, to manage liquidity without distorting market dynamics. The next call from the Ministry of Finance, at the end of July, will be key to assess market confidence and determine if adjustments will be required in Lecaps rates to renew this mass of pesos without destabilizing the economy.
Source: Ambito
