Stock exchange rates have recovered about a quarter of the declines they had suffered at the beginning of the week. Prices are hovering around $1,320.
The Financial dollars rise for the second consecutive day This Thursday, July 18. In this way, the quotes They have recovered about a quarter of the declines they had seen at the beginning of the weekfollowing the announcement of the new monetary/exchange rate strategy by the Government.
The dollar “counted with liquidity” (CCL) increases 1.3% ($16.99) and is located in the $1,325.82which is why the gap with the official exchange rate climbs to 43.3%. For its part, the dollar MEP advances 1.8% ($23.38) to $1,323.38.
Exchange rates on the stock market fell by more than $130 between Monday and Tuesday, after officials from the Executive Branch announced that the Central Bank (BCRA) will begin to use the currencies it bought on the official market to intervene in the stock market, with the aim of reducing the gap, which had reached 56% last week.
However, after falling to a floor near $1,280, dollars began to rebound on Wednesday. This reflects the market distrust regarding the sustainability of the plan, given that it puts the accumulation of reserves at risk.
The Government began a new stage of monetary/exchange rate policy
For example, if the Central Bank buys $100 today, it will issue $92,500 today. What it wants to do now is to remove those pesos from the market by selling CCL, which at current prices would mean losing almost $70 of those $100, while the surplus would remain in the reserves.
According to the Ministry of Economy at the beginning of this week, the equivalent of the $2.5 billion that the monetary authority issued each time it received foreign currency from exports or other reasons will be sold at the CCL. This would imply a outflow of reserves of approximately US$1.9 billion.
The market is concerned that the BCRA will stop accumulating reserves
The new strategy puts the objective of accumulating reserves on the back burner, something that worries the markets considering that in the third quarter fewer dollars usually enter the country due to seasonal reasons. In addition, the use of reserves to intervene in financial markets is something highly questioned by the International Monetary Fund (IMF), which could be a cause of tension in the face of the new agreement.
Source: Ambito
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