“That is precisely why it is with the bonds that are quoted in foreign currency that aims to reduce the gap between alternative dollars and the official dollar“, he pointed.
He then remarked that it is not only an attempt to reduce the gap between the dollars, but also a demonstration to the markets: “In this way, what is demonstrating to the markets is that it has a surplus of silver, even for advance payments. Which makes that drop the country riskand improve the yield of the bonds with which any financing need that exists has greater chances of placement otherwise,” he explained.
“It is a way of intervening in the gap to lower it. It is as if you were selling future dollars but it is the other way around, you advance payments.” On the other hand, he added: “It is a significant saving. those bonds They quote a third of what the face value is worth.“.
“The news is auspiciousit is a demonstration of power”, he considered and then expressed: “Actually blue buck is tickled nothing else,” he concluded.
Meanwhile, the national deputy and president of Banco Credicoop, Charles Heller described as “good news” the repurchase of external debt.
This measure, “It is good news that marks a path of recovery of some central aspects such as improvements in reserves, and control of economic variables”Therefore, the government “has been taking advantage of a certain situation of improvement in its reserves, and sees it as a new opportunity to lower debt,” he declared in dialogue with El Destape Radio.
In this sense, he explained that market expectations generate that Argentine debt securities are sold today at 30% of their nominal value, “allowing the sale of a security worth 100 dollars at 30, being a great opportunity to lower the debt.” .
Reaction on social networks
Dario Epstein, from Research for Traders, highlighted the positive aspects of the buyback: “My reading of Massa’s announcement: Increases firepower to intervene dollar MEP and CCL, via purchase of bonds. From the BCRA they were limited by the IMF. Supposedly alt dollars would drop. The gap would be narrowed. // But surely my reading is wrong… “, said the specialist on his Twitter account.
Negative reactions to Massa’s announcement
On the contrary, the former Minister of Economy during the presidency of Mauricio Macri, Alfonso Prat Gay pointed out: “It is not understood: weren’t the few dollars in the reserves “for production”? It turns out that now they are to “improve the country risk and maturities…of 2029/30? 7 years left to pay them off! Let’s hope no official has bought those titles recently…”
In the same vein, the liberal economist Gustavo Lazzari harshly criticized the measure: “Massa announced:
1) 1000 sticks are five Ronaldos
2) The Treasury debt is repurchased by the BCRA. this is the best country in the world. We pay with printing what we have to pay with savings.
3) The campaign started. Play Massa
4) There will be new spots at 9 am
No more”.
The economic consultant joined the rejection and expressed: “Delirous, The BCRA does not have dollars to import inputs and they go out to buy external debt. With this maneuver do you think for the distrust in the weight?
Source: Ambito
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