Wednesday , May 12 2021

The dollar fell 3.4 percent after PKRA withdrew to $ 106,300 million in three days

The headquarters returned to take out the pesos from the market (closing Sunday absorbing 105 billion dollars) without influencing the rate; for Sandleris, the pes is still "exaggerating" to shocks Source: Archive



It seemed to confirm yesterday that, with fewer redundancies on the street, the chances of maintaining a bullish road were complicated.
The average price fell by 1.9% (from $ 38.46 to $ 37.72 for wholesale and retail)
from $ 39.54 to $ 38.80 for the public) at the end of the working round shorter than usual (by the G20, the activity ends two hours before) and after accenting

Central Bank

(BCRA) its commitment to a strong contractual monetary policy not only in the operational, but also in the gestural.

Thus, the ticket won its third wheel successively a fall and accumulated an average withdrawal of 3.4% at that time, after it started running close to $ 40 on Monday and threatened to return to the maximum levels that reached before the start of the era of Sandley. That did not prevent, however, the closing of the week (today the markets do not work for the national holiday) with an increase of 0.2% and accumulates in November a recovery of 5%.

The collapse began when the monetary entity decided to double the efforts to withdraw the peso from the market, after spending the December relief test for the month of December (month of high seasonality in demand for money), allowing the impact of disarmament


(which allows to lose $ 120,000,000) an additional injection of $ 78,000 million was added to the partial renewal of liquidated debt (Leliq) that expired.

But, having confirmed that this relaxation caused nearly 7% average jump in the currency in just two days, he decided to file a trial for another opportunity.

"This week they won $ 469,267 million in Lelik and awarded new letters for $ 583,867 million, or absorbed more than $ 105,000 million at no higher price, which averaged from 61.40 to 60.75% per annum for free: Lelik shares totaled $ 718,711 million , and the interest payment bill, which stood at 6300 million dollars this week, exceeds 9500 million dollars next week, "summed up financial analyst Christian Buteller.

"This week, unlike the previous one, it was clearly shortened, with BCRA absorbing roughly half of what was expanded in the previous week, and the dollar withdrew part of what progressed even with the reference rate slightly down. To show that to reduce the rate without affecting the dollar, BCRA must be boring with handling the amount of pesos, "said economist Gabriel Camagno, from the Ledesma study.

A strong jump from the law between Friday and Monday set fire to government alarms that began to enjoy a "sword" on a stable market (the end of the crisis prevented the collapse of Mackie's image) and was preparing to capitalize it by persuading oil companies to reduce fuel prices, given the decline in the international crude oil price, although the rate of domestic taxes is increasing in the coming days.

The relief test aims to achieve a reduction in the higher rate after the BCRA is released (next week) to remove the floor of 60% willingly to show commitment to its goals. And thus generates the feeling that the worst crisis begins to leave behind.

But the dollar's reaction forced BCRA to rethink plans. "Inflation remains high and our currency is still reacting excessively against internal and external shocks," confirmed the day before yesterday

Guido Sandleris

, when exposed to the Council of America. "We are aware of the risks our economy faces, so we will only increase the monetary base, if the conditions allow," he said, leaving in doubt that he uses the privilege he has in the deal with


to expand the monetary base by 6% in December. "We will only do it if we realize that the increase in demand for money is not what we have planned," he said.

Neither the G20 is helping to repay debt bonds

Links of

Argentinean debt

they have failed to recover despite the signals that the US Federal Reserve has issued in recent days, admitting they could pause their policy on a small, but continually increasing benchmark for that economy. "Demand does not appear, so they fell 25 cents in the middle and 50 in the long part of the curve, so that during the week they accumulate losses of 1.5 to 2%," said Sebastian Chiza in the report. , of the SBS group. Because of this weakness, the country's country risk rate remains above 700 points (closed to 704), although the indicator floor (ascertained by the rate that the bond yielded by 10 years) dropped another 1% yesterday. , to be 3.03%.

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