The news is that the Government will be able to use US$10,000 million to intervene in the exchange market.
With the hours, the news will take on its own weight. The announcement coming from China will necessarily influence the dollarboth in its official version and also in the financial ones, which are the ones that mark the way for the Dolar blue. What has not been said, what the economic team thinks, is that, from now on, it will have an ace up its sleeve with a vital objective: to bring the exchange rate gap closer.
Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina
The news is that the government it will be able to use US$10,000 million to intervene in the exchange market. This leads us to assume that the exchange rate tensions generated by the scarcity will have to subside, at least in part.
The agreement with the People’s Bank of China (PBoC) to renew the swap for three years was, finally, more than that, since it increased the funds of “free availability”. This was the objective sought by the Minister of Economy that he could not reveal until before achieving it.
Financial dollar intervention
It means that you can use US$5 billion, but then add another US$5 billion, with prior authorization. Although the original use that the BCRA should give these yuans is to finance imports from China, the truth is that there is also authorization to buy dollars.
One point that the market will have to weigh is that, for the agreement with China to continue performing, Argentina must keep its program with the IMF. In the economic team they assume that this also applies to the eventual case that both Argentina and the IMF decide to face a new agreement and not the renegotiation of the goals that arise from the current one.
Source: Ambito
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