While the financial dollars remain stable, the blue dollar recovers and returns to the $320. This Wednesday collect five pesos and therefore equals the price it posted three weeks ago.
With this we mark a downward blind alley that the informal has shown in the last few wheels and which has led it to touch the $312 last Monday.
At the beginning of the week, the Christmas bonus effect and the sale of tickets by foreign tourists in the informal market had contributed to lowering the blue. The pause in the escalation of financial dollars has also contributed to this, which in this round remain practically stable: the MEP’s dollar reaches $322.8 and cash with cash yields 0.9%, a $330.
The comeback of the Azzurri shouldn’t be surprising, seen the informal is the most retarded within the range of dollars Argentina is run with. Priced at $320, it’s up 55% for the year, while financials are up 63% and official prices are up 67.5%. All with an inflationary curtain that will close 2023 at around 100%.
In the early days of this week, small businesses and businesses came out selling tickets to cover Christmas bonus payments, which also prompted the withdrawal of financial dollars. Now, those pesos would be dollarized again at the hands of wage earners trying to protect their savings.
At this conference, market expectation is set to see how the government fares in this afternoon’s tender, where the Finance team is to roll over deadlines for $411,000 million.
From Portfolio Personal Inversiones (PPI) they point out that “99% of December payments fall into this first test, for which it will be the most relevant test of the month. Again, virtually the entire payment will go into private hands at a time when refinancing has become significantly more complicated.”
“Helped by the increased liquidity of the soy 2.0 plan, the liquidity of bank reserve requirements and increased participation of public entities, governments and municipalities The Treasury is likely to get close to covering full payments“, they point out.
“A good signal is needed to start 2023 on the right foot, which already has a wall of deadlines in the first quarter”, slip in ppi.
Bad day for Argentine assets
This Wednesday, Argentine stocks and bonds fall in both Buenos Aires and New York. Locally the Merval index of the Buenos Aires Stock Exchange fell by 1.2%.
ADRs on Wall Street were also down, with losses of up to 3% for Transportadora Gas del Sur and increases for some publications such as Cresud, which jumped by 5%.
As for bonds, most dollar-denominated stocks are moving lower with declines of up to 4% in the case of the Global 46.
This bad performance of bonds is being felt by country risk, which is rising again after hitting its lowest level since last June on Monday. This time, the JP Morgan indicator measuring the excess cost of Argentina’s debt rises 1.7% and reaches 2267 basis points.
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Source: Clarin
