The National Securities Commission (CNV) ordered changes in the operation of the financial dollar (Cash with Liquidation), by defining new terms of permanence (parking).
The National Securities Commission (CNV) arranged changes in the operation of the financial dollar (Cash with Settlement), by defining new terms of permanence (parking) related to the conclusion of operations with negotiable securities with settlement in foreign currency and jurisdiction, establishing differences according to the law under which they have been issued. But what does it mean?
In a statement, the CNV indicated that as of today “and within the framework of Necessity and Urgency Decree No. 164/2023, it is established that the minimum period of permanence in the portfolio will be one day for marketable securities issued under Argentine law, and three days in the case of marketable securities issued under foreign law”. The measure was adopted through the approval of the Board of Directors of RG 957.
This means that:
1.To foreign law sovereign bonds are added one more day (3 days) and for local law and LEDs, one day is subtracted (1 day).. With this measure, “the government seeks to encourage the use of local law species so that the market takes them as a reference for exchange operations, instead of foreign law, acquiring greater firepower to intervene in financial dollars and, perhaps, tending to to reduce the spread between legislations,” said Delphos Investment.
2. The deadlines for the MEP dollar operation will not be modified, it is only for the CCL. “The modification is in line with the government’s need to have greater intervention capacity in dollar markets, despite the fact that the IMF stressed that this type of exchange operations should be avoided,” added Aurum Valores.
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3. The debt exchange operation in dollars for public entities announced weeks ago, they must sell their holdings of Bonares and exchange Globales. For SBS, “the economic team will seek with the measure to generate demand for Bonares so that public entities can sell them.”
Source: Ambito
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