The market remains concerned about the current level of reserves. “The net reserves (of the BCRA are) below 1,000 million dollars. The main Achilles’ heel today is the exchange rate, and it is urgent to reverse it. Energy payments decrease, agriculture liquidates even more than a month ago, and even so the BCRA continues to sell (currency),” said analyst Juan Paolicchi on his Twitter account.
The head of Economy has on the agenda the meeting with peers from different portfolios to establish budget priorities for the rest of the year. The BCRA in the last nine days sold some 1,160 million dollars of its reserves.
“We had reserve levels lower than this and we were able to deal with the situation. The same is going to happen in the coming months,” said the president of the BCRA, Miguel Pesce, in a journalistic interview when referring to the daily sales of international reserves.
The seasonal peak in energy demand at times of high international prices is behind this string of sales, according to the official. The new economic management will have a first litmus test this Tuesday with a conversion operation of Lecer, Lepase, Ledes and Boncer titles for another ‘Dual’ bond, to reschedule short-term maturities. The Government said it had a guaranteed commitment of 60% of the holders to accept the proposal.
The risk rating agency Moody’s said regarding Argentina that “it expects little general support for austerity policies before the 2023 presidential electionswhich will continue to weaken the country’s ability to meet the goals of the International Monetary Fund (IMF), especially in fiscal matters”.
Market sources do not rule out that the BCRA will decide this week on a new increase in its reference interest rate, in line with the expected acceleration in July inflation that will be reported on Thursday.
Bonds and country risk
In fixed income, the main sovereign bonds in dollars fell by up to 4% led by the Bonar 2041, followed by the Bonar 2038 (-3.5%) and the Global 2035 (-3.4%).
Thus, the country risk prepared by the bank JP. Morgan rises 10 units to 2,381 basis points.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
