The porter bag bounced this Tuesday May 16 after stopping a six-day bullish rally the day before, in a market that is still digesting a series of Economy measures, among which the rise in the rate stands out at 97% per year and the decision of a greater intervention in the exchange market, which seeks to contain high inflation.
BYMA’s S&P Merval Stock Index it rebounded 0.4%, to 321,315.86 points, after scoring its intraday record in pesos in the first part of the round at 324,614.88 units for purchases of investor receipt papers.
The Government announced on Sunday a package of measures that seek to contain the escalation of retail prices and sustain the price of the dollar, with an annual rate of 97%, more interventions in the exchange market and agreements with creditors, basically new goals with the Fund International Monetary Fund (IMF).
“We are evaluating the measures. As we have said before, we continue to discuss ways to strengthen the program and safeguard stability in light of the severe drought” that made the BCRA coffers lose millions of dollars, said an IMF spokesman.
He added that “This includes policies to improve fiscal sustainability and build reserves, both essential to reduce inflation, while protecting the most vulnerable.”
Inflation and devaluation keep investors away from instruments in pesos and the dollarization of portfolios deepens just three months before the primary elections and five months before the general ones, where Argentines will elect a president to take office in December.
The idea of having a positive rate against inflation is to stop the flight from the financial holding of pesos in favor of the dollar, now placing the monetary policy yield as the highest in just over two decades: 97% annual nominal (TNA) is equivalent to 154.3% as effective annual (TEA) and 8.1% monthly.
Thus, the financial dollar rose to levels of 448.7, while the blue rose to $488, approaching its nominal record ceiling of $497 recorded in April.
Financial operators agree that the latest package of measures seems insufficient to contain projected annual inflation at almost 130%, given the massive monetary issue and a complex fiscal deficit.
Bonds and country risk
In the fixed income segment, for its part, sovereign bonds in dollars fell an average 0.4%, against negative 0.9% on Mondaytogether with a country risk measured by the JP.Morgan bank that it rose nine units to 2,591 basis points.
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