Dollar and bonus: from Cedears to MEP, the best ways to dollarize the pesos in June

June started and workers are preparing to get paid in a few days the half year bonusas they say Complementary Annual Salary (SAC). This benefit means an additional income of pesos for blank employees, who many times, especially in this context of crisis, use it to cover debts, but others can save or invest so that value is not lost as a result of inflation and the devaluation of the peso. Many, the first thing they think about is dollarizing it, but what is the best way to do it.

The easiest path that people usually choose is the blue dollar or the MEP. But the truth is that the bonus is blank money and it does not make much sense to dollarize it via the informal currency market, which takes it out of the legal circuit.

Buy dollars: MEP vs. blue

Thus, if you choose buy dollarsthe best option is the MEP which, as explained Fernando Dirazar, director of Del Sur Capital Market and financial advisor, “this dollar can be purchased on the stock market, without limit and at a price similar to that of the blue.” Likewise, economist Elena Alonso indicates that “it can be purchased through a virtual wallet or ‘home banking’.”

“You can access it by buying bonds in pesos and selling them in the market against dollars or with stocks listed in the US and liquidating them against dollars,” he explains. Joel Lupieri, economist at Epyca Consultores.

Negotiable obligations and Cedears, another option for the bonus

That, however, is the most conservative option. “Another alternative for pesos to become foreign currency, but generate income, could be invest them in a negotiable obligation of a company (ON) that yields in dollars“, Alonso points out. And he points out that there are some that yield between 8% and 10%, although it is a longer-term bet, of around six months.

On the other hand, Dirazar proposes that “another way is build a Cedears portfoliowhich, although they are purchased with pesos, are acquired in the local market, but they are certificates that allow the purchase of shares of US companies, which is why they are quoted in dollars.

“Put together a portfolio of cedars I like it,” Alonso agrees. And he suggests that it could be composed of a part of artificial intelligence and technologyand another of energeticalthough commodities must be rearranged.

And finally, I would put another little part in Argentine stocks to be able to boost the performance of the portfolio and another in sovereign bonds, such as a GD35, although that would do it in the longer term. That, to have a diversified portfolio.

Sovereign bonds in dollars, a refuge for the bonus

Another option that Dirazar suggests is “buy Argentine bondswhich have had a very good performance this year and there is an expectation that they will continue to rise.” They give interest and an income in dollars.

“I would put another little part in Argentine stocks to be able to boost the performance of the portfolio and another in sovereign bonds, such as a GD35, although that would be the case in the longer term and to have a diversified portfolio,” says Alonso.

Ultimately, those are the three easiest options to do and most recommended according to city analysts: MEP dollar, Cedears and bonds, with some variables such as ONs. All instruments to go towards the dollar.