The director of the Central Bank, Federico Furiasehe said that Government will maintain the scheme of flotation bands after the elections, with interventions of the BCRA in it floor and roof so that the price oscillates in a predefined range to avoid extreme fluctuations.
In turn, he explained that the decision of the National Treasury If intervened in the exchange market, it had the objective of providing liquidity, it was previously agreed with the International Monetary Fund and did not imply the use of Central Bank reservations. Furiase clarified that the operation was “minimal in relation to all the dollars he bought.”
During an interview in A24, he said: “In the background it seemed great that it is transparent and that it is notified of the market, is aware of this and everything we have been doing”
The official emphasized that no international reserves of the monetary authority were used but that it was financed with dollars acquired from the fiscal surplus and net treasury plans. “Today there is no intervention on the reserves of the Central Bank. The reservations are from the Central Bank and dollars are sold on the band of the band only. The dollars used by the Treasury come from your fiscal surplus and of its operations in the market ”.
Regarding treasure operations, Furiase explained that he bought 3,000 million dollars, including Bonte bonds for USD 1.5 billion at an average price of 1,130 pesos and another 1.5 billion to 1,250 pesos. He considered that this ensures sufficient “ammunition” to operate without affecting the reserves of the monetary authority.
The director of the BCRA clarified the operations of the Treasury because “there is a context of political noise” within the framework of the elections and that generates “liquidity in the market.” In this way he explained: “To provide that liquidity and ensure proper functioning, The Treasury has done this participationwhich is also minimal In relation to all the dollars he bought, and has been coordinated with the International Monetary Fund”
In that sense, he remarked that the objective was to maintain exchange stability in a context of economic and political volatility. “In successive rounds we have seen that with very little volume the dollar can rise. Therefore, to ensure the proper functioning of the market, we provide liquidity ”, accurate.
The Government announced the intervention in the exchange market
This morning, the Secretary of Finance, Pablo Quirnopointing to the social network X that “The National Treasury announces that from the day of the date it will participate in the market -free market in order to contribute to its liquidity and normal functioning.”
The Quirno statement met at 10:40 hours, when the dollar was around 1,380 pesos and an hour later had dropped to about 1,362 pesos.
In market media it is said that the official did nothing more than sincere what the market suspected, that is, the treasure is detaching to try to stop the rise of the currency and thus avoid the rise in the exchange rate impacts inflation and, consequently, affect the electoral possibilities of the government.
Some operators criticized the decision of the Ministry of Finance by maintaining that it is “incongruous” That at a time when the BCRA records negative net reserves, the treasure is sold to dollars inside a band in which it was supposed to float.
Surely the measure would not be well received by the bonists who will compute the perspective of less dollars when charging their credits.
Source: Ambito
