The dollar bonds They fall sharply this Thursday, March 23, and the falls accelerate after the 6.9% collapse of the previous day. Government formalized the presidential decree that orders public bodies to sell or exchange their holdings of bonds in dollars for one in pesos, as published in the official gazette.
In this context, titles denominated in hard currency fell to 7% led by Global 2046, followed by Global 2029 (-3.4%) and Bonar 2035 (-2.1%). In the last month, the bonuses drop to 20%. Thus, the country risk shoots up 1.71% to 2,500 basis points, for the first time in more than 4 months.
Title “in pesos to be received by public entities will be a new dual bond to 2036, which will pay as interest the maximum between CER (inflation) plus 3% or dollar (tied to the A3500 communication) plus 3%”, said financier SBS Group.
Criticism multiplied by some analysts, basically because it affects the so-called Sustainability Guarantee Fund (FGS) of the pension system, with a technical calculation that foresees a cost with interest rates in the order of 45% in dollars.
Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina
“This swap is the same as throwing the garbage under the rug,” said economist Martín Redrado, while his colleague Juan De Pablo maintained that “the strength of (Economy Minister Sergio) Massa is threatening to resign.”
He International Monetary Fund (IMF) is evaluating the debt swap announcement made by Argentina based on the objectives of the agreed program for 44,000 million dollars, said a spokeswoman for the agency.
“Obviously, this mandatory exchange is a slap from the Government, because it seeks to stop the rise of the dollar, without having dollar bills, in exchange for a very high cost and for another Government to face it. You want to avoid a hyperinflationary state shortly (time) after the elections,” commented a financial market specialist.
S&P Merval and ADRs
The Buenos Aires stock market, for its part, bounces to the beat of foreign markets after the US Federal Reserve insinuated that it is about to pause interest rate hikes in the face of recent turmoil in the banking sector that threatens to cause a serious overall recession. He S&P Merval it gains 0.5%, to 226,039.88 points, with the encouragement of energy firms, against an adverse drag of 1.69% the day before conditioned by the official bond decision.
On Wall Street, Argentine papers are trading with the majority of increases of up to 6% led by Globant, Mercado Libre (3.3%), Ternium (2.6%) and Despegar (2.1%). Meanwhile, Edenor, IRSA (-0.2%) and Central Puerto (-0.2%) fell to 2.3%.
Source: Ambito
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