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Reserves: there was a full carry trade in March and US$139 million were repatriated

Reserves: there was a full carry trade in March and US$139 million were repatriated

For the second consecutive month, Argentines brought in more capital than they took out of the financial system. In the first quarter, US$213 million were accumulated.

The cocktail of pseudo-exchange stability and inflationary slowdown encouraged Creole investors to intensify their bets on the carry trade in March, which was reflected in the higher level of net capital repatriation of 139 million dollars. In this way, the first quarter of the year shows a positive balance in terms of net flows of $213 million.

The March shortage is explained by two sources: net foreign exchange earnings of US$93 million and net ticket sales of US$45 million. The result of banknotes was explained by the net sales of legal entities for US$42 million and individuals for US$3 million.

It is worth remembering that since mid-December last year, by resolution of the AFIP (number 5463), the rates of personal profits and assets were modified for the purchase of foreign currency for hoarding and for expenses in foreign currency with a card. Thus, the total surcharge on these consumptions is currently 60%: 30% via COUNTRY tax and the remaining 30% for Profits or Personal Assets, as appropriate.

In addition to ticket sales, in March there were also net income to own accounts from abroad for a total of US$93 millionlinked to the net income received by individuals for US$63 million, from the “Real Sector excluding Oilseeds and Cereals” for US$21 million, from “Institutional Investors and others” for US$7 million and from “Oilseeds and Cereals” for US$2 million.

The numbers of the financial sector

On the side of the financial exchange account of the “Financial Sector”, March data show a surplus result of US$307 millionexplained by the fall in the liquid external assets of the entities that make up the General Exchange Position (PGC) for US$340 million, by the net income from financial loans and lines of credit for US$21 million, by the net income for loans from international organizations for US$2 million, which were partially offset by the net subscription of securities for US$57 million.

This way The entities ended March with a PGC stock of US$6,671 million, which meant a 5% drop compared to the end of the previous month. This decrease is explained by the fall in the holding of banknotes for US$387 million, which was partially offset by the increase in the holding of foreign currency for US$47 million. In this regard, the holding of banknotes in foreign currency totaled US$5,092 million at the end of last month, a stock that represented 76% of the total PGC and is kept by the entities to attend to the movements of local deposits in foreign currency and the needs of the exchange market.

In relation to bets in the futures market, the group of entities closed March with a forward sold position in foreign currency for US$741 million, reducing their sold position compared to the close of the previous month by about US$76 million. During March, The entities bought US$283 million in institutionalized markets and sold US$208 million directly to “Forwards” clients.

For their part, foreign capital entities closed March with a net sold position of US$412 million, stretching their sold position compared to the previous month by US$69 million. While national entities bought US$145 million, reducing their net sold position compared to the previous month to US$329 million.

Source: Ambito

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