According to that work, the Financial Conditions Index (ICF) worsened 7.5 points in Juneas a result of a deterioration in Argentine financial conditions and a very marginal improvement in international conditions.
Both groups are in negative territory, but the world is in moderate stress and Argentina is in severe instability, according to the IAEF, which at the same time warned that since the indices take monthly averages, it is “very unlikely that in July there will be an improvement , Rather the complete opposite”.
In June, the variables that most influenced the worsening of the financial conditions of the local economy were inflation and country risk.
In this context, in the first week of July inflation One of the components with the highest increase was food. This registered an increase of 2.5%, which marked an acceleration of 2 points compared to the previous week, when it was 0.5%.
In regards to risk country measured by the bank JP.Morgan rises on the day 12 basis points, at 2,662 unitscompared to a record 2,728 points scored last week and the initial 1,083 points recorded two years ago.
In the local index there only one component in a favorable situation: it is long-term liquiditywhich is measured by the difference between deposits and loans.
For its part, the external conditions sub-index went from -14.6 to -14, the second consecutive month of negative results: expected inflation was the variable that contributed the most to the drop while confidence among banks was the one that contributed the most to the improvement .
With a look of a year, the volatility of the actions were the variables that behaved worse, both in its American variant and the actions of emerging markets, the IAEF pointed out.
The entity recalled that the financial conditions index has been in a negative zone since August 2019, the month in which the local sub-index had a significant collapse as a result of the result of the presidential primary elections.
Source: Ambito
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