For its part, the MEP dollar -also valued with Global 2030 – dropped $8.42 (-3%) to $268.29, so the gap compared to the official exchange rate dropped to 103.3%. In the last five days, the MEP showed a drop of 12.3%, but during July it showed a rise of 10.9%.
In the informal exchange market, meanwhile, the blue dollar fell $16 (-5.4%) to $280, after selling a little over a week ago at $350, its all-time nominal record. During the past week, the parallel registered a fall of 12.4%, but during July it registered a rise of 24.4%.
The president of the Chamber of Deputies, Sergio Massa, As of Wednesday, he will take charge of a new ministry that will encompass the economic, productive and agricultural areas of Argentina.
“The appointment of Sergio Massa as ´super minister´ of the economic area produced a strong change in market expectations”, evaluated the consulting firm Delphos Investment.
Investors await economic announcements that seek to reassure the financial market at a time when annual inflation threatens to exceed 90%, the central bank has few reserves and exchange rate pressures put pressure on the market.
“The chances of a devaluation, whether de jure, via a discreet jump in the exchange rate or de facto, via an exchange rate split, will be more latent than ever throughout August,” warned Portfolio Personal Investments. “In this regard, the new minister could give clues at the press conference on Wednesday,” she estimated.
The Central Bank had to get rid of some 140 million dollars of its reserves on Friday, to end July with a negative of about 1,270 million dollars mainly affected by energy payments.
“The peso is appreciated and there are no dollars in reserves to alleviate the situation. Until now the response has been quantitative, that is, with stocks and more stocks,” points out the consulting firm Econviews. “It gives the impression that the economy can no longer resist so many turnstiles and is going to pay for it with the level of activity, and more inflation. Devaluing in an environment of low credibility generates a transfer to prices very quickly, increasing inflation even more”he claimed.
“The key this week will be focused on the political agenda and the announcements of possible new measures with the change of cabinet. The expectation is particularly on the exchange dynamics that, despite the slowdown in financial dollars, continues to be inconsistent”indicated from Portfolio Personal Investments.
In this frame, the country risk measured by the JP. Morgan bank fell four basic points to 2,394 unitscompared to a recent intraday all-time high of 2,976 points.
Another of the factors that conditions financial exchange rates to fall was the BCRA’s decision to sharply raise its benchmark interest rate on Thursday, by 800 basis points, to 60% per year, to match market returns and in an attempt to slow inflation and stabilize the exchange rate.
Source: Ambito
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