Despite the package of measures announced last week by Sergio Massa, the currency and financial front is moving with delicate fragility. This Monday, the Central Bank sold dollars again to support market dynamics: parted ways with another $95 million and increased his red for the month to $1.550 million. In the parallel market, blue rose $1 and financial dollars rebounded.
The persistence and speed of the dripping of reserves is the shared concern between the market and the government. Over the past fifteen rounds, the organization finished with average revenue of $101 million per day. The bleeding started in the second half of January and far from improving, It only seems to get worse this month.
In total, since the beginning of 2023Central has already sold more than US$ 2,600 million in the “Single and Free” Trading Market, almost all the proceeds of the last edition of the “‘dolar soya” Last December. While the Government is defining whether they advance with new differential dollars for different export sectors, agricultural liquidations this month are down more than 70% compared to what they recorded a year ago.
“During the first 75 days of the year, $5.2 billion of international reserves have already been lost due to lower dollar income added to a steady flow required by the BCRA to pay for imports and mainly private debt” , the consulting firm indicated. GCL.
This Monday’s sales had a peculiarity. As indicated by the operator Gustavo Quintana, of PR Corredores de Cambio, at half wheel, the agency had already sold more than 50% of what was finally liquidated to meet the demand of the banks. “Demand for physical dollars by financial institutions triggers assistance from BCRA, with dollar bill sales of US$52.80 million to meet cash flow needs“, She said.
Sources in the economics team clarified that such moves are common at the start of the week. “Financial institutions cannot import banknotes and the BCRA is the usual supplier, with movements recurring every month,” added Quintana. Until last Monday, the latest official data available, the stock of dollars in private sector banks averaged $16 billion.
“Resistance to accelerating the crawling-peg is spreading, even in the midst of an unstoppable flow of currency, which accentuates worries about scarce net reserves, in the face of which the upcoming new measures on the demand and supply of currencies are discounted”said the economist Gustavo Ber.
Ber added: “Debt conversion not only does not control them, but would seek to settle the exchange gap through financial dollars, even when traders anticipate that such an effect could be transitory, as happens when it is based only on regulations and not on changes in the foundations of imbalances”.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.