Rising inflation that could exceed 100% this year, and currency pressures, have investors looking to the stock market for hedges, traders said.
The Central Bank ordered that as of Tuesday the economic agents that have sold soybeans under the “Export Increase Program”, which implies a higher exchange rate, they will not be able to access the market to purchase foreign currency or carry out “operations with titles and securities with settlement in foreign currency”, although it clarified that “it is not applicable to human beings”.
Soy settlements made during this month have a special exchange rate of 200 pesos, in order to increase BCRA reserves.
“This measure could stop or slow down the hitherto steady flow of foreign currency and overheat the parallel dollar,” said brokerage StoneX. It is “impossible to cover several holes with one hand at the same time”he claimed.
In the last two weeks, the BCRA has accumulated foreign currency acquisitions in the market for some 2,380 million dollars, thanks to the liquidation of some 3,868 million dollars sold mainly by soybean producers, based on Reuters data.
“The measure announced and implemented by the BCRA is going to have an impact on the flow of sales from producers, collectors, and cooperatives to exporters. This measure is detrimental to the soybean chain,” said Gustavo Idígoras, head of the Export Center of Cereals.
The leading stock index S&P Merval it lost 1.4% to 148,193.94 points, after improving 3.1% on Monday and scoring a record high of 150,971.41 points. The Buenos Aires stock market falls this Tuesday due to taking short profits after reaching historical maximum levels the day before. the merval falls “based on the weakness exhibited by the main ADRs that, beyond the ‘outperformance’ of recent times, maintain a greater correlation with respect to the appetite for global and emerging risk”Ber said.
Bonds and country risk
In the fixed income segment, the dollar sovereign bonds They operate disparate with falls of up to 3% for global GD29D followed by GD38D (-0.8%). The advances respond to the Bonars 2038 (0.8%) and Bonar 2041 (0.1%).
In that framework, the risk country Argentina measured by JPMorgan rises 0.8% to 2,386 basis points, maximum in more than two weeks and fifth rise in six consecutive days.
Source: Ambito
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