In turn, the MEP dollar rises $3.14 (+1%) to $315.94, after touching $320 and reaching a maximum in four months. Indeed, the spread with the official reaches 93.6%.
In the parallel market, for its part, the blue dollar advances $4 (+1.3%) to $312, so the gap with the official exchange rate reaches 91.6%.
The looks of the market They focus on the low level of BCRA reserves, despite strict exchange controls, an annual inflation that would reach 100% this year.
“In the short term, the great risk in Argentina continues to be inflation, to which are added the BCRA reserves, which do not reach a floor,” said Adcap Financial Group.
“There are more pesos and fewer dollars, and the monetary authority is heavily intervening in the secondary market, especially buying 2024 bonds,” explained and estimated that “The underlying risk in the near term is that the CCL will continue to rise.”
“The upward rebound in currencies was foreseeable given the challenging local financial situation,” said VatNet Financial Research. “We believe that the critical variable to monitor is whether the BCRA manages to obtain a current exchange surplus, as an essential requirement to then continue advancing on other fronts,” he said.
For his part, the wholesale dollar rose 0.3% to $164.87under the persistent liquidity control imposed by the BCRA with purchases and sales of its reserves.
“Most likely, the Government will continue with its strategy of, on the one hand, accelerating the rate of devaluation -119% annualized devaluation in recent days-, promoting the liquidation of exports -with measures such as the special regime for the economy of the knowledge or for regional economies- and apply a greater import tourniquet and to the demand for foreign currency (tourist dollars, concerts, luxury goods, etc.)”, estimated the consultancy ABECEB.
The day before, the BCRA was only able to buy 1 million dollars from the market for its reserves, with which it has lost some 960 million dollars so far in November. “Since November 1, the firepower of the BCRA decreased by 2,100 million dollars due to payments to international organizations (USD 725 million) and the interventions of the monetary authority in the market“, estimated Portfolio Personal Investments (PPI).
The Government seeks to speed up a review of the accounts of the International Monetary Fund (IMF) to approve objectives for the third quarter of 2002 that would enable the disbursement of fresh funds for the reserves.
Source: Ambito
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