The BCRA provided details on the new monetary framework for “currency competition.” It confirmed that it will intervene on the exchange rate gap with reserves purchased since May (sterilization cap of $2.4 billion) at a discretionary pace. The migration of debt to the Treasury has ended. What’s next?
Following the succession of announcements about changes in monetary policy to try to contain the pressure on the dollar, many of which were not communicated by the competent authority itselfthe Central Bank published a report on Tuesday in which it provides details on the operation of the latest measuresThe organization said that they are seeking to lay the foundations for “currency competition.”
There, he noted that the objective going forward is to limit the broad monetary base “in the nominal amount existing on April 30,” That is, $47.7 billion current pesos. This will imply, according to the entity that presides over Santiago Bausili, The Central Bank announced that it will sterilize up to $2.4 billion through intervention in financial dollars with sales of the reserves purchased starting in May, although it announced that it will do so at a discretionary pace. Depending on the MEP dollar and CCL exchange rate, this will mean getting rid of some $1.8 billion (at today’s values) in a context of negative reserves.
Furthermore, the report confirmed that Banks subscribed to $10.85 billion on Monday in the debut of the new Fiscal Liquidity Letters (LEFI) and, thus, the handover of remunerated debt from the BCRA to the Treasury was completed.
News in development.-
Source: Ambito
