He Central Bank (BCRA) renewed this Thursday less than 3% (2.8%) of the maturities of the Leliqs (Liquidity Bills) at 28 days, at award just $56,788 million, with a rate stable 133% annual nominal (TNA).
In fact, there was a strong expansion of $2,003 billion against maturities of $2,056 billion.
The abrupt cut in the renewals of Leliq’s tenders is due to the political and economic uncertainty pending the assumption of the Javier Milei to the Presidency on December 10, whose immediate commitment It is that of a “shock” plan and the liquidation of the “Leliq” to stop the escalation of retail prices. The elected president won with the premise of dollarizing the economy and eliminating the BCRA.
In this way, and after this Thursday’s tender, Leliq’s stock was reduced to $ 7.5 billion, according to analyst Salvador Vitelli.
Already last week, Leliqs stock had begun to fall noticeably. On Tuesday and Thursday of last week and last Tuesday, Leliq’s rollover was 39.7%, 10.5% and 22.9% respectively, with private banks’ rollover being even lower.”reported the SBS Group.
Analysts agreed that until the beginning of this week there was a notable increase in fund placements in the so-called “Levid” letters, which follow the evolution of the official dollar and are redeemable at any time at 100% of their technical value.
However, given the frantic furor over these “Levids”, the BCRA decided to annul the tenders. Market sources estimate that as of November 27, the ‘stock’ of these bills amounted to about $5.12 billion. The BCRA decided “not to open that tender again.”
The flight of liquidity from the “Leliq” It is because with the The new Government expects a strong devaluation in the official exchange rate and that is why other alternatives are resorted to as a safeguard of value.
Another part of the liquidity in dance is directed to the “Repos” or “Pases”, a type of loans to the BCRA for one day.
Milei has just confirmed Luis “Toto” Caputo as Minister of Economy. After the adjustment of public spending to eliminate the fiscal deficit, the country will enter a period of “stagflation,” Milei said.
Source: Ambito
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