The Central Bank established, within the framework of the transition, that operations in the official exchange market require approval before being carried out. Implying?
The BCRA limits operations in the MULC within the framework of the transition.
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He Central Bank (BCRA) decided to apply this Monday the rule of prior compliance to all demand operations carried out through the exchange market. Thus, they explained that, “during the transition, exchange operations will be analyzed and processed based on priorities.”
In fact, this implies that, today, almost no one will be able to buy dollars, except in matters of necessity and urgency, which must be approved by the BCRA. Only exporters can liquidate, although very few operations of this type are expected on the day of the end of the export increase program.
“The measure was arranged based on give time to the management of the Executive Branch to comply with the administrative procedures for the formation of the new authorities and announce and implement the policies that they will carry out,” the Central said in the statement that informed the decision.
BCRA implements a “virtual exchange holiday”
This is within the framework of the transition of change of president that the monetary regulator is carrying out, after the assumption of Javier Milei. And in this way, the affirmation of a large part of the market that this Monday would be a “virtual exchange holiday.”
In summary, as explained by economist Christian Buteler at Ámbito, “the decision is due to the fact that the exchange rate regime that will work with the new government has not yet been established.” And he points out that, in this way, we seek minimize operations in the foreign exchange market as much as possible.
“This decision is also due to the end of the validity of the splitting scheme that allows exporters to settle 50% at the official exchange rate and the rest in the financial market,” he says in this regard. Santiago Manoukian, Ecolatina economistin dialogue with Ambit.
End of the dollar program for exporters
Explain that if that scheme ends and is not replaced by a currency correction or other scheme that involves a higher exchange ratethat will result in a negative effect on the performance of the BCRA in the official exchange market and it could impact a drop in reserves because it would require greater intervention from the regulator in that area.
Thus, Manoukian considers that “it is logical that a decision of this caliber be made in a context in which there is a transition and measures must be taken to contain reserves in a very fragile context.”
On the other hand, it mentions that the export increase program contributed to controlling the price dynamics of the Cash With Settlement (CCL) dollar, so we will have to see how it reacts this Monday to the end of that measure given that it would imply a decrease in supply of foreign exchange in that square.
Note in progress.-
Source: Ambito
