The cash dollar, the way companies use to be dollarized, jumped four pesos this Tuesday and reached $409.9. It is the highest nominal price reached so far. This establishes how the most expensive among the parallel dollars. It’s up 19% so far this year, below the Q1 inflation estimate, which is close to 21%.
The CCL jump happened in the middle of a market full of versions on upcoming announcements of new adjustments in the foreign exchange market, which would affect the tourist dollar, some imports and which would define new soybean 3 dollar terms and differential pricing for regional economies. Minister Sergio Massa is expected to announce the new measures this Wednesday.
At the same time, the MEP dollar, which is traded on the Buenos Aires stock market, rose to $402.4, a jump of 1.4% and 22.7% so far in 2023.
For its part, the blue dollar rose by a single peso and closed at its level $393. This brings the exchange rate gap with the wholesale dollar to 86% and therefore appears to be consolidating below 90%.
The central bank continued its sell-off on Tuesday and got rid of it 49 million dollars. It already has 21 consecutive rounds of sales. they left him 308 million dollars on these two working days of April and $3.286 million so far this year.
In the midst of this loss of reserves, Central accelerated the rate of devaluation. This Tuesday brought the daily update -i creeping peg– to the 6.9% and an average of 6.2% over the last five rounds. This is the highest rate of devaluation since last September.
Ecolatin data show that the creeping peg March was 6%, compared to inflation which for private advisors had a 7% floor last month. This indicates that the exchange rate had lagged.
The staff report released on Monday by the Monetary Fund on Argentina’s situation says that, given rising inflation, it is possible that “further policy tightening and monetary policy adjustments”.
Increased country risk
Argentine bonds had a negative spin, with declines of up to 3.5% pushing up country risk again. The JP Morgan indicator measuring the Argentine debt overrate increased 3.2% to 2,352 basis points.
Bad day also for Argentine stocks. Merval lost 1.3% and in New York ADRs fell by up to 4%, as in the case of Transportadora Gas del Sur and Loma Negra.
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Source: Clarin
