24hoursworld

Why did the blue dollar crash? this is what analysts think

Why did the blue dollar crash?  this is what analysts think

In contact with Ambit, specialists gave an account of the reasons that could explain the setback on the path of Dolar blue.

The Economist, Salvador DiStefano, held that the fall of the blue dollar responds to a financial situation of a market where no sales. According to the specialist, these fell in all commercial sectors. In addition, he referred to the fact that an indicator of this situation of declining demand was evidenced by the fundraiser for the month of octoberwhen the sum that rose in real terms during the last ten months represented only 1.5%.

There was a historical drop of 10% in sales in food companies, 15% in restaurants and 10% in warehouse. The situation is complicated. There is no doubt that the sinking of the blue speaks of lack of money in the street“, he emphasized Stefano, by accounting for the systemic problem that affects the decline of the parallel dollar.

For its part, Christian Butlerindicated that this drop was surprisingmore in this context, when the official dollar rises every day and there is an inflation of 7% per month.Seeing the blue stable in recent months and now with a small setback, was not expectedthere will be more needs for pesos for this beginning of the month and some liquidate their dollars at that value,” added the operator.

Juan Albornozremarked that the dynamics of the blue dollar is usually relatively in line with that of the financial dollars and that, although the dollar bill is the reference price for all Argentines, the financial dollar, being a legal exchange rate and with greater volume, is more reliable for the analysis of recent dynamics.

From the peak that was observed at the end of July, the bill has fallen sharply, approximately $40 in nominal terms. However, today’s money, that is, considering accumulated inflation, at the maximum, people paid more than $400 per dollar. If we go a little further and we look at the movie of the blue dollar adjusted for inflation throughout the current stocks, today we are more than 16% below the average (If we take into account US inflation, that percentage is about half). This implies that the dollar is becoming cheaper compared to the rest of the goods and services in the economy,” the analyst expanded.

Concluding, the economist held two possible readings: “The first is that the economy could begin to appreciate as a result of the sharp rise in interest rates and greater fiscal and monetary rationality at the margin. The second is that the current price may be attractive if we think that there is not going to be a change of expectations.”

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts