Financial dollars rise and hit one-week highs

Financial dollars rise and hit one-week highs

The financial dollar rises this Tuesday May 9th, after falling in the previous day. In that way, the exchange rate gap remains below 100% for the sixth consecutive day, in the middle of official interventions and restrictions ordered by the National Securities Commission (CNV), who seek keep the currency gap at bay after the strong jump observed in April.

In that context, the MEP dollar o Stock Market -operated with the GD30 bond- advances $2.61 (0.6%) to $433.21. Thus, the gap stands at 89.8%.

For his part, he dollar “counted with liquid” (CCL) -operated with the GD30 bond in the PPT segment- rises 77 cents (0.2%) to $439.65. So, the spread with the officer reaches 92.6%.

Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina

In the caves, meanwhile, the blue dollar increases $3 (0.6%), to $473, so the exchange rate gap touches 107.2%.

Short- and medium-term doubts accelerated the taking of hedges in foreign currencies that put pressure on the market and led the Government to greater controls and increases in interest ratesat a time when guidelines are being renegotiated with the International Monetary Fund (IMF) for a credit of 44,000 million dollars.

The launch of new cross controls and the continuation of the intervention with dollars and with bonds ‘worked’ and the financial exchange rates fell again in the (last) week (rise of the peso). Stability that for now we consider as temporary since the picture in general did not improve,” said the EcoGo consultancy.

The Government “has decided to go to the IMFask for the advances and make a strategy together with the Fund that implies some corrections in fiscal matters, in the rate of devaluation, in exchange for certain things. What matters most is receiving dollars and be able to do some intervention in the market with those dollars and have some firepower,” said analyst Javier Timerman.

“Going forward, reserve accumulation and high inflation represent the main challenges, which could trickle down to local asset prices. However, some support from international organizations seems possible”Balanz said in a report.

Meanwhile, the Central Bank (BCRA), in the last round was barely able to add some 7 million dollars for its battered reserves, against agricultural liquidations for some 35.4 million dollars. This is the second lowest settlement since the start of the special 300-peso scheme for agro-settlements, surpassed by a round in mid-April where the sector did not directly sell anything to the BCRA.

Analysts estimate that BCRA net reserves are in negative territory, while the gross is located at about 34,000 million dollars, the lowest since October 2016.

Finally, the country risk measured by the JP.Morgan bank rises and stands at 2,591 units.

Source: Ambito

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