The decree, to which Ámbito had access, bears the signature of President Alberto Fernández. Among other things, it forces public bodies to part with their dollar bonds.
Report by Liliana Franco
He Government made official on Wednesday Decree of Necessity and Urgency (DNU) that obliges public bodies to dispose of their holdings of bonds in dollars to contain the pressures on financial currencies and absorb pesos.
Through the DNU to which he had access Ambitwhich bears the signature of Alberto Fernandez and the ministers and ministers of his Cabinet, the State seeks to take pressure off the currency in the midst of a new escalation of the blue dollar.
In this way, public entities are ordered to exchange their bonds in dollars under foreign law (global or GD) for instruments in pesos under local legislation.
The total amount covers about US$4,000 million. In addition, it will proceed with the incorporation of dollar bonds under local law (bonares or AL) in the CCL dollar operation.
This battery of announcements was communicated this Wednesday morning by the Minister of Economy, Sergio Massa, to representatives of financial institutions and banks during a working breakfast at the Palacio de Hacienda.
Next, one by one, what are the measures decreed by the Government:
- Order public bodies to enter the exchange with their bonds in dollars under foreign legislation (global or GD)
- Incorporate dollar bonds under local law (bonares or AL) in the CCL dollar operation to generate depth in the market
- The Ministry of Economy, in coordination with the BCRA, will concentrate the management of the rest of the ALs that were not placed on the market
- Withdraw GD bonds from the market
What is expected to be achieved
- Allows for the absorption of surplus pesos that otherwise put pressure on inflation
- Manages to reduce debt in dollars with foreign legislation
- Generates instruments to act in the financial dollar market WITHOUT affecting reserves
- The management of these instruments (today disseminated in different Public Sector agencies) is concentrated in the Mecon, in coordination with the BCRA
- Lift some exchange restrictions, as a first step towards a principle of normalization
- It helps to reduce the volatility of the financial dollar market in particular, and of the capital market in general, thus avoiding its impact, among others, on inflation.
- Equates bonds with local legislation (AL) as a benchmark for the financial dollar market
- It continues to consolidate the treasury’s financial program, and
- In this way, we continue on the path of stabilization to overcome the crisis of June 2022.