The financial dollar operated with great volatility and fell after official measures

In addition, given the global expectation for the Federal Reserve’s decision on rates (it raised them 25 points), the dollar Cash with Settlement (CCL) -operated with the Global 2030 bond- it gave up $2.42 (-0.6%) to $397.17, after giving up more than $6 earlier in the day and then rallying to more than $400. Thus, the spread with the official reached 93.3%.

Learn more- I followed the price of the blue dollar, official, CCL and MEP in Argentina

Instead, the MEP dollar -operated with the Global 2030 bond- increased $1.12 (+0.3%) at $387.10, after approaching $381 at the start of the day and then rising as high as $386. Indeed, the gap with the official was located in the 88.4%.

In the informal market, on the other hand, The blue dollar fell $3 back to $391, after shooting up $8 on Tuesday, according to the survey of Ambit in caves of the city of Buenos Aires. During the day it fell to $390.

On Tuesday after the market closed, the Ministry of Economy launched a The package includes an exchange of US$4,000 million in bonds under foreign law (global or GD) that are held by national public sector organizations for securities in pesos and the incorporation of bonds in dollars under local law ( bonars or AL) in the CCL dollar operation.

In this way, it seeks to give greater depth to the market with which the CCL dollar is operated -which is currently enabled exclusively for bonuses GD29, GD30, GD35 and the rest of the global series– and, at the same time, give instruments to the Treasury and the Central Bank to act in the financial exchange market to avoid jumps in the gap.

The decree will be accompanied by resolutions from the Central Bank, the National Securities Commission and the Superintendence of Insurance of the Nation to remove the restrictions that some institutional investors have to buy CCL through Bonares.

“These still gray measures would not have a direct impact on the price of financial dollars, but rather on destroying sovereign parities, both in dollars, by not finding a buying point, and in pesos, if access to tenders or Bonares depends on getting out of other titles.What is clear is that the debt repurchase program announced on January 18 of this year with parities of 37% is corrupted by the decision to sell the same debt at parities of up to 25% “, analyzed from Aurum Valores.

For its part, Adcap Wise Capital indicated that “The impact on the stock market dollars is not very clear. The Government is not going to use these bonds to lower the exchange rate because the Globals will be delisted, and the Bonares will be auctioned to private parties. Perhaps if it fails to place all the Bonares in the bidding, try to sell them against pesos, causing the exchange rate to drop if the price in dollars is maintained.”

Support from bankers and brokerage firms for the Economy measures

The Minister of Economy, Sergio Massa, met this Wednesday with bankers to explain details of his decision to force all national public bodies to exchange their holdings of dollar bonds under foreign legislation for public securities in pesos to be issued by the Treasury. The meeting began after 9 o’clock this Tuesday in the Belgrano Hall of the Ministry of Economy. Massa was accompanied by the secretaries of Economic Policy, Gabriel Rubinstein and of Finance, Eduardo Setti; the head of the advisory cabinet, Leonardo Madcur; the president of the Central Bank, Miguel Pesce and the head of INDEC, Marco Lavagnaamong others.

Juan Politi, de Allaria Ledesma maintained that “The objective is to stabilize the financial situation. I see it as positive”, while Sebastián Negri of the official National Securities Commission (CNV) affirmed that “it is a very good measure of financial order (…) the private sector took it very well.”

The president of the Buenos Aires Stock Exchange, Adelmo Gabbi, supported the measures that the Ministry of Economy will implement to give greater liquidity to the markets. “It will be positive. There will be more supply than demand,” said Gabbi, and clarified that “market prices generate prices based on expectations. When there is an expectation of a large seller, it is reasonable for the expectation to be reduced or to try to pay less That will be regularized immediately.” In this regard, he ruled out a loss in value of the Sustainability Guarantee Fund (FGS), based on the fact that “it was always well managed.”

In the same way, the president of the Caja de Valores, Ernest Allaria, held that “the feeling is good”, and affirmed that “this measure aims to contain the financial exchange rates”. “They are going to go on the market through auctions, very transparent, very coordinated supply and demand by the State, coordinated by the Ministry of Economy,” said Allaria. Along these lines, he stated that “the minister asked us to monitor the measure from the technical side” and anticipated new meetings in the coming days. “In the first 30 days, the bonds issued abroad would be delisting them, removing them from listing the bonds that are in the hands of the State. He spoke to us of around US$4,000 million, it would become less debt to be paid by the State”, Allaria added.

For his part, the financial consultant and partner of Adcap, Xavier Timerman, He highlighted the attendance of representatives of the banking sector at the meeting, and noted that the announced measure “orders all public sector debt and begins to withdraw from the global market.” He also stressed that it is a “good sign in terms of the Ministry of Economy consolidating all public sector debt holdings in dollars.” “They take globals out of circulation, clearing up chances of possible sale in the market and respecting the initial spirit of the repurchase,” Timerman said.

“Today (Wednesday) we begin to deepen the bond market in local law dollars, beginning with the purchase of holdings of global bonds from public entities, which will allow the foreign law (Global) public debt to be lowered by some 4,000 million dollars initially “said the Vice Minister of Economy, Gabriel Rubenstein, on his Twitter account.

Among the bankers, the presidents of the Macro Bank, Jorge Brito; from Banco Santander, Alejandro Butti and from Banco Credicoop, Carlos Heller, as well as executives from banks Galicia, BBVA and heads of business chambers in the sector, along with executives from entities linked to investment funds and insurance.

In this context, sovereign bonds in dollars collapsed up to 8.3% (Global 2029), which was corroborated by the country risk measured by the JP.Morgan bank, which climbed 4.4%, to 2,447 basis points.

Meanwhile, investors also remain attentive to the interventions of the Central Bank, which added sales for just over 1,100 million dollars only in the course of March, to the detriment of its reserves.

On the other hand, the final endorsement of the IMF board of directors is awaited to release 5,300 million dollars based on the objectives met by Argentina by the fourth quarter of 2022, within the framework of the 44,000 million agreement signed a year ago by the government of the president Alberto Fernandez. The IMF said on Tuesday that the government had informed it that it will combine two payments due on March 21 and 22, into one payment to be made on March 31 for a total of $2.676 billion.