Bonds in dollars fell to 6.3% due to a change in BCRA strategy with CCL and MEP

The dollar bonds fell sharply this Thursday before a change of strategy of the Central Bank (BCRA)which caused the financial exchange rates to jump, in the absence of the intervention with which it had been keeping them at bay after the bullfight last April.

The Bonar 2030 led the falls, with a drop of 6.3%, which showed a performance of more than 49%.

Rigid controls to access the exchange market cause the dollarization of portfolios to be channeled to permitted operations such as cash with settlement (CCL) and the MEP dollarfor which dollars are obtained through the purchase and sale of debt securities in pesos that are listed in the country and in another international market.

“The rise in the CCL and MEP is due to the fact that they stopped intervening. To what extent is it to take care of reserves or punish those who make the ‘curl’ (short speculative purchases and sales in different markets) is something that will be known over the course of the time”, said Fundcorp’s Roberto Geretto.

For its part, a BCRA source said that it is about “a highly volatile market. And if some put together ‘curls’, they have to assume that there is risk and that it can go wrong.” “That does not mean that we run or that we will return today or tomorrow; simply, the strategy responds to achieving an objective without meaning to feed speculation,” he claimed.

The BCRA reserves are at compromised levels, so the Government is negotiating with the International Monetary Fund (IMF) changes to the goals in its agreement for 44,000 million dollars and seeks to advance disbursements to fight a high inflationary rise and sustain the value of the domestic currency.

“The BCRA does not want to take the time in its way of intervening so as not to ensure ‘curls’, so it runs from the market, generating greater volatility, which is one of the objectives that it seeks to avoid intervention,” said analyst Christian Buteler. “The intervention is like a spring, once run if you failed to convince the market, supply and demand will bring the price back to its natural level,” he pointed.

The country risk carried out by the JP.Morgan bank rose strong 52 basic points, to 2,606 units towards the close of the local market (2000 GMT).

Find out more.- Dollar today and blue dollar today LIVE: how much they operate this Thursday, May 18

S&P Merval

The S&P Merval stock index reversed a declining start due to profit-taking and rose 1.04% to a provisional close of 331,210.61 points, after renewing its intraday record at 331,992.57 units.

Companies that have “refuge against the nominal acceleration of the local economy and protection against an eventual exchange rate jump” are preferred for having their operations linked to the official dollar and stand out for their export capacity, explained Delphos Investment.