According to a report from the Central Bank, the organization allocated US$153 million to reduce the gap with the financial dollar. This figure represents less than half that of July. What were the causes?
The Government significantly reduced the intervention on the dollar in the month of August. Product of a greater supply of dollars in the financial market, the Central Bank (BCRA) It only allocated US$153 million in the financial market to contain the exchange gap.
The data responds to the official report “Evolution of the Foreign Exchange Market and Exchange Balance” of the Central Bank, which reflects that the decrease is more than half compared to July (at that time, the intervention had been US$326 million ). ANDl laundering, the moratorium, the payment of Personal Property Tax and the blend dollar, They helped the Government reduce the gap that today is below 30% for financial dollars.
Central Bank of the Argentine Republic
Pax Cambioria: How long can it last?
According to a report by Vectorial, August and September represent a kind of “financial spring.” The first reason is linked to money laundering, which generated a strong growth in deposits. Secondly, the international context. The Fed’s lowering of rates means that Argentina can repay its debt at a lower cost and potentially higher prices for commodities, the country’s main export.
However, the report suggests that once the flow of dollars resulting from laundering stops, tensions may return to the exchange market.
“The BCRA is still unable to buy reserves and dollar maturities are getting closer. An example of this was given by the Government itself with a DNU that enables debt exchanges in foreign currency. This action suggests that without the possibility of issuing new debt and without a confirmed repo, the Government will opt to offer a voluntary exchange,” explained the consultant.
In addition, LCG adds some other factors that may generate tension in the coming weeks and are mainly linked to the Central Bank. “The BCRA has not accumulated reserves since May and dollar accounts remain under tension.” Regarding money laundering, he estimates that although it has not yet materialized to a large extent in an increase in gross reserves, it is expected to occur in the coming days.
Source: Ambito
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