The financial dollar scores its fifth consecutive drop after the measures that the Government has been taking to reduce activity in the dollar stock market. The financial dollar falls again this Thursday, May 4, while the MEP limits the increases.
Since last Wednesday, the CCL – operated with the GD30 bond – fell $44. Its greatest decrease occurred this Tuesday, May 2, around $4.
In this framework, this Thursday the Dollar Cash with Settlement (CCL) – decreases $5.51 (-1.27%) to $421.86. Indeed, the spread with the official stands at 89.7%, the lowest in more than two weeks.
Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina
For his part, he MEP dollar or Bag -operated with the GD30 bond- maintains the bullish trend and $3 (0.71%) to $434.08, remaining below the blue.
In the parallel market, meanwhile, the blue dollar drops $2 and trades at $467 for sale, according to a report of Ambit in the parallel market.
The measures that the Government is taking
Government has been taking measures to control the price dynamics of financiers. First, he did it through interventions with dollars from the Central Bank (BCRA) reserves in the CCL market in order to stop the currency run that occurred at the beginning of last week and throughout the previous week. That had an initial calming effect, but new measures were expected to come and they arrived this Tuesday, through new regulations from the National Securities Commission (CNV).
What the stock market regulator did was establish, through RG 959/2023, new limits for financial dollar purchase and sale operations and established that, as of this Tuesday, they could not be carried out if there is a debtor bond, both in pesos and in dollars. The aim, according to City analysts, is to reduce the volume of foreign currency traded through publicly traded stock instruments so that the government’s firepower yields more when it comes to intervening.
To this end, halted the leveraged buyout of the dollar stock market and cable so that, if an investor borrows money from the market via bonds or repos to buy a title (generally in pesos but that is also quoted in dollars), he cannot then sell it against the MEP or CCL dollar. That is to say, what stopped the NVC is the possibility of operating these exchange rates for those who have an active financing operation with sureties or repos.
This was arranged because many investors took money in security and bought dollars MEP or CCL. In this way, they borrowed in pesos, delivering negotiable securities as collateral to go to the financiers. So. What the CNV seeks with this measure is to cut off the significant money flows that made parallel dollars rise. Ultimately, it points to take volume out of the MEP and CCL operation.
Source: Ambito
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