Financial dollars plummet again this Tuesday, July 16as a result of the Government’s decision to intervene in the stock market to reduce the gap and remove pesos from the economy. The prices slow down the initial rise, but still break through the $1,300 mark and the spread with the official exchange rate falls below 40%.
The dollar “counted with liquid” (CCL) falls another 2.5% (-$32.18) to settle at $1,281.65, for which reason the gap with the official exchange rate falls to 36.6%the lowest since May 30. For its part, the dollar MEP down 2.3% (-$29.39) to $1,278.15.
Stock exchange rates have just collapsed by more than $100 on the first business day of the week. Previously, they had chained four consecutive weekly increaseswhich raised the spread with the wholesaler regulated by the Central Bank (BCRA), from 40% to a peak of 56%.
Faced with this jump, which began to put the inflationary deceleration process at risk, officials of the Executive Branch announced over the weekend that The monetary authority will begin to use foreign currencies that buys in the official market for intervene in the stock market.
What is the economic team seeking with the new measure?
One of the objectives of the measure is Eliminate the “tap” of peso issuance that occurs every time the BCRA acquires dollarswhether due to the liquidation of exports or for other reasons.
As an example, If the Central Bank buys US$100 today, it issues $92,400. What you’re going to do from now on is sell the equivalent of those pesos to CCL dollarswhich at current prices would result in a sale of US$72. The US$28 surplus would be kept by the entity led by Santiago Bausili.
In parallel, the Government also intends to Increase the supply of financial dollars to lower their price, narrow the gap and improve the conditions for the exit from the currency controls in the future.
What are the risks of the intervention?
This action It puts the accumulation of reserves at risk and goes against the recommendations of the International Monetary Fund (IMF).
“The government’s announcement over the weekend on monetary matters was clearly very hasty when it should be the BCRA that should be the main actor. The most important thing is to reduce the gap that affects the shelves with price increases, which threatens Milei’s political capital,” said an economic analyst from a foreign private bank.
“What is worrying, and the markets are exposing them, is the slowdown in the accumulation of reserves, which makes bondholders nervous and that is why they fell, at the same time as the country risk naturally rose,” he added.
In the face of market doubts, the economic team led by the minister Luis Caputo had to improvise that he will use the pesos from the fiscal surplus accumulated during these first seven months to buy dollars from the BCRA to pay interest on the external debt for January 2025.
The Ministry of Economy anticipated that the “sterilization” of pesos for sale in the CCL will be approximately $2.5 billion, which with the current gap would imply a outflow of reserves of approximately US$1.9 billion.
In parallel, taking as a reference the US$30 million of average daily purchases that the Central Bank has been registering so far in July, it would be a little more than US$20 million per day which would be used to intervene in the financial sector in accordance with Caputo’s objectives.
Former Deputy Minister of Economy, Emmanuel Alvarez Agis, He said that this decision represents a threat to exporters.“If the CCL falls, the export exchange rate will be reduced, which would make it better for exporters to sell foreign currency. If the threat is not effective, the risk is that the BCRA will start selling foreign currency and the gap will become ever wider,” he added.
How much is the official dollar trading today, Tuesday, July 16?
In the official exchange market, the wholesale dollar quoted at $924 after rising $1.
How much is the dollar futures trading today, Tuesday, July 16?
In future dollar contracts, the price for the end of July fell 0.5% to $938.5. Towards August, it fell 0.1% to $973.50, but by the end of September it rose 0.1% to $1,013. By the end of the year, meanwhile, it fell 0.4% to $1,163.
How much is the blue dollar sold for today, Tuesday, July 16?
He Dolar blue it is located in $1,415 for sale, According to a survey by Ambit in the caves of the City.
Dollar card price today, Tuesday, July 16
He dollar card or touristand the dollar savings (either solidary) is located at $1,505.60.
Crypto dollar quote today, Tuesday, July 16
He crypto dollar or Bitcoin dollar operates to $1,351.53according to Bitso.
Source: Ambito
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