The dollar bonds They fell hard this Thursday, March 23 after plummet to 6.9% in the previous day. Government formalized the presidential decree who orders public bodies sell or exchange their holdings of bonds in dollars for one in pesosas published in the official gazette.
In that context, hard currency-denominated stocks sank as much as 5.3% led by Bonar 2041, followed by Global 2029 (-5%) and Bonar 2035 (-3.4%). In the last month, the bonds fell to 18.7%.
Thus, the country risk shoots up 1.6% to 2,497 basis points, although during the day it touched 2,500 for the first time in more than 4 months.
Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina
It should be noted that this day the Argentine Government made official the presidential decree by which official entities must deliver dollarized titles in exchange for other pesificados.
Title “in pesos to be received by public entities it 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 the financier SBS Group.
“Beyond the launched debt swap operation, currency bleeding concerns continue to take center stagesince the net reserves are at too critical levels and said strategy would not be the one that ends up contributing new supply”, said the economist Gustavo Ber.
“Instead, the initiative aims to have more tools to try to control the dynamics of financial dollars, as well as provide financing in pesosto avoid shocks in this transition stage where the ‘macro’ imbalances and external noises are added to the usual pre-electoral dollarization,” he added.
S&P Merval and ADRs
He S&P Merval it lost 2.5%, to 219,276.74 points as a provisional close, after a bullish start. The decline was led by energy stocks.
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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