At the same time as the implementation of the agricultural dollar as part of the measures agreed with the Reserve Recovery Fund, The government has changed the hurdles to operate with financial dollars and from this Tuesday some of the bond transactions for this purpose will be carried out with a new minimum holding period.
The National Securities Commission (CNV) has decided to extend the “parking” for the purchase of cash with settlement (CCL) to 3 days in the case of qualifications governed by foreign law and reduced to 1 for instruments of Argentine law.
This Tuesday, the measure was sanctioned by General Resolution 957/2023 published in the Official Gazette and in whose foundations it is proposed to “stabilize the markets”.
For the exchange rate, Cashing in with cash is one way for companies to become dollarized through the purchase and sale of bonds, settled with funds deposited in accounts opened with US banks in New York. But since 2020, the government has imposed restrictions, known as “parking”.
At the time, the measure aimed at containing dollarization with securities traded on the stock exchange, which implies that a certain number of days must be parked between the purchase of a security and the sale. Until today, investors they had to wait 2 daysa wait that entails a risk due to the change in the price of the newspapers. Now it has been changed again.
In this way, the economic team confirmed its intention to intervene on the exchange rate gap through the loophole that the International Monetary Fund (IMF) would have allowed after the restrictions imposed in the latest revision of the targets. A few weeks ago, the agency allowed a new soybean dollar, but limited intervention in the financial market, with some apparent margin for occasional operations.
On the market, the provision was interpreted as an incentive to operate with Bonares (AL), the instrument that the government hopes to use to keep CCL at bay in view of the elections. “I don’t know what effect it will have on prices, but those who want to have fewer days off will have to go to the market where the government has the firepower to intervene,” said an operator.
As indicated in the resolution, the decision of the CNV is part of the decree that on 22 March ordered a forced exchange of securities in dollars in the hands of ANSeS (Globals and Bonares) to contain the pressure on financial dollars and finance the deficit. So far this year, CCL is up 17% ($403) and MEP is up 19% ($390).
In CNV they explained that the regulation will also reach those who have already purchased the securities and have acknowledged their intention to promote the ALs, securities that ANSeS will sell once the UBA finalizes the audit and pronounces itself on the exchange. Sergio Massa has asked the Chamber of Studies and the Agn for an evaluation after the complaints against the financial operation.
“The objective is to encourage the operation of financial dollars to be channeled with the securities in dollars of local legislation, the ALs”, say CNV sources. Indeed, the measure would make accessing CCL through Globales more expensive and cheaper through Bonares, according to market estimates. This would leave the BCRA and ANSeS, which have more ties under Argentine law than under foreign law, in better conditions to intervene.
The resolution instead establishes that the minimum period of stay remains 1 day for the purchase of MEPs and 2 days for sales abroad, except in the case of primary placement or shares of companies listed abroad (Cedears) . Then the measure would have a greater impact on retail investors, which are the ones most affected by parking. “Large investors have ways to lock in a CCL price without exposing themselves to bond movements,” another trader explained.
What does the resolution say?
ARTICLE 1.- Replace article 2 of Chapter V of Title XVIII of the REGULATION (NT 2013 and amendments), with the following text: “SALE OF NEGOTIABLE SECURITIES WITH SETTLEMENT IN CURRENCIES. TRANSFER ISSUE. MINIMUM TERM OF TERM”.
ARTICLE 2. – To carry out sales transactions of negotiable securities with settlement in a foreign currency and in a foreign jurisdiction, the following minimum terms of detention must be observed of such Marketable Securities in portfolio: (i) ONE (1) business day in the case of Marketable Securities issued under Argentine law, and (ii) THREE (3) business days in the case of Marketable Securities issued under foreign lawboth terms count towards its accreditation with the Central Negotiable Securities Depository Agent.
These minimum holding periods do not apply when dealing with purchases of negotiable securities settled in a foreign currency and in a foreign jurisdiction.
Carry out sales transactions of Negotiable Securities settled in foreign currencies and in local jurisdictions the minimum period of stay in the portfolio to be respected will be ONE (1) business day to be calculated in the same way as previously provided.
This minimum holding period does not apply in the case of purchases of Transferable Securities settled in foreign currencies.
To carry out transfers of Marketable Securities acquired with settlement in national currency to foreign custodians, a minimum term for holding such Marketable Securities in the portfolio must be respected. TWO (2) business days, counted from the accreditation with the Centralized Depository of Negotiable Securities, except in cases where the accreditation with such Agent is the product of the primary placement of negotiable securities issued by the National Treasury or in the case of shares and/or CERTIFICATES OF DEPOSITO ARGENTINOS (CEDEAR ) with trading on markets regulated by this Commission.
The Settlement and Clearing Agents and the Trading Agents must verify compliance with the minimum terms of permanence of the aforementioned marketable securities”.
ARTICLE 2.- This General Resolution will enter into force on the same day of its publication in the Official Gazette of the Argentine Republic.
ARTICLE 3.- Register, communicate, publish, submit to the National Directorate of the Official Register, access the Agency’s website www.argentina.gob.ar/cnv, add to the text of the REGULATION (NT 2013 and mod.) and archive.
Source: Clarin
