Battery of measures to stop the dollar: they raise the interest rate for the banks

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“The Central Bank of the Argentine Republic informs that from 18.01.2023 the rate for Reverse repurchase agreements with a duration of 1 business day are 72% while for active operations The duration of 1 working day is 97%”. The press release sent by the Central Bank arrived 40 minutes after Sergio Massa’s announcement of the Government’s decision to open a “Argentina’s External Debt Repurchase Process of Over One Billion Dollars”. The goal is to put on the table a battery of measures that will help calm the markets, in the midst of a parallel sustained dollar rise.

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With this complementary measure, the institution remunerates its short-term debt securities, one and seven days.

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The rate for 1 business day reverse repurchase transactions is from 70% annual nominal at 72%while for active operations with a duration of 1 working day it is 97%, before it was 95%.

After Massa’s announcement, in an initial market reaction, Argentina’s sovereign bonds they jump up to 11% in New York.

The Global 2029 bond, the one with the shortest duration and one of those indicated by Massa as the target of the purchases that the Central Bank will make on behalf of the Treasury, jumped 11.44% just before 10 in the morning in Argentina. Global 2030, another one mentioned, was up 11.11% in dollars in minutes.

The entire curve of global dollar bonds, those governed by the courts of New York, has shown increases. Global 2035 was up 10.37%, Global 2038 was up 7.59%, Global 2041 accompanied by 6.22% progress and Global 2046 was only up 8.42%.


Source: Clarin

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