Federico Furiase, Luis Caputo’s right hand, reported that the weights will be absorbed via increased lace with new public titles to be subscribed next Monday.
After struggling in the Debt tender this Wednesday, The Government announced a new emergency placement for next Monday, August 18. He aim It is absorbing the surplus of weights and Lift possible pressures on the price of the dollar.
The Treasury was able to renew just 61% of the $ 15 billion that beat in the week. Faced with the doubts about where the surplus, Federico Furiase, director of the Central Bank and the right hand of the Minister of Economy, Luis Caputo, communicated the new measure.
“The weights will be immediately absorbed via the increase in paid lace with new public titles to be subscribed next Monday (Day of the liquidation of today’s tender), through a new tender of the Treasury, “said the official.
The analyst Martín Polo warned to Scope That the recent modification in the liquidity absorption scheme could lead to greater volatility, since “it is not entirely clear how much the banks need lace” and that the impact is not homogeneous throughout the financial system. He recalled that, with the Lefi, the market had a more predictable behavior, while now “more round trip” is observed in liquidity.
In his analysis, he estimated that an important part of the surpluses – approximately $ 4 billion – will be allocated to lace, while the rest could be channeled through a title to absorb weights and prevent them from pressing down on the rates. “The fear is that these funds end up going to the dollar. Although today it is said that there are no relevant pass-through, The exchange rate at $ 1,360 bother the government and was a risk“, held.
The rates contain the dollar escalation, but put the activity at risk
Polo remarked that The official strategy aims to maintain high rateswith an eventual marginal cut, to contain the exchange pressure. “The relationship is clear: if you accept lower rates, you have to tolerate greater volatility of the dollar, and today they do not seem willing to assume it,” he concluded.
Despite the limited percentage of “role”, a brief refinancing was foreseen since the Ministry of Finance had put a stop for the shortest Lecaps, with the aim of extending deadlines or increasing the liquidity of the financial system, in order to press a low rate decline.
Even so, rates for the shortest titles placed in the day reached a high 69.2% in annual and effective terms. In this way, concern for the impact of these returns on economic activity grows.
Source: Ambito
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