In the midst of the dollar’s escalation, La Rosada ratified Pesce to the Central Bank

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After a new day of tension marked by the frantic rise of the blue dollar to 462 dollars and by the greater expectations of devaluation, Miguel Pesce will continue to lead the Central Bank. Fountains of the Pink House confirmed its continuity, after the meeting he held this Thursday with the President to analyze the trend of the currency crisis that erupted last week and is still ongoing.

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Pesce entered the Government Palace a few minutes before 16:00 and exited around 18:00 The presence of the official at the Government Palace gossip firedIt concerns its possible exit from the BCRA amid difficulties in containing alternative prices. With a $20 increase in blue, the exchange rate gap rose to 110% -the highest since last August-, despite the fact that the power plant bought $105 million on the foreign exchange market.

Pesce’s unexpected visit coincided with a meeting between Alberto Fernández and Foreign Minister Santiago Cafiero with the President of the National Assembly of the Socialist Republic of Vietnam, Vuong Dinh Hue, with whom they discussed Bilateral trade and investment. “The president must have seen Pesce five minutes before, I don’t have him, but there was no meeting”, other La Rosada sources limited themselves to replying.

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the fish is the last of the surviving Albertists within the economics team, from which Matías Kulfas (Production Development), Martín Guzmán (Economics) and Mercedes Marcó del Pont were expelled last year. (AFIP). Sergio Massa’s landing has done nothing but limit his margin of action, with measures previously unthinkable or well opposed by the BCRA, such as the dollar for soy and foreign tourists.

Driven by the crisis, the minister received Fish in his office on Thursday. They analyzed the negotiations with the IMF, rate hikes and restrictions put in place to stop the outflow of dollars to pay for imports of services. The photo was intended to show the coordination, after learning of an alleged plan that involved a 60% devaluation and ended with the abrupt departure of presidential adviser, Antonio Aracre. But it didn’t clear my nerves.

The interpretation of Economy was that Alberto summoned Pesce today because the measures “would not have produced results”. And they ratified the trip to the United States this Thursday of the chief adviser, Leonardo Madcur, and the deputy minister, Gabriel Rubinstein. They plan to meet with Treasury officials and Argentina’s head at the IMF, Luis Cubeddu, to review the program and frontload disbursements, including World Bank and IDB funds.

The plan to avoid a sharp devaluation is still in the eye of the storm. A two-business day suspension of access to import dollars contributed to the BCRA today buying 100% of the $105 million it entered from the soybean dollar. The slowdown in import demand made it possible to close the second consecutive round with a positive balance, including that of Friday, given that it reflects the fragility of the situation.

“Dollar retention will likely be reduced tomorrow compared to Friday and today, the key variable is how much of the farm dollar can be translated into real volume, to the extent that there is no genuine buying, currency regulations are capped and could break , marking the beginning of a completely different scenario from the current one”, warned Salvador Vitelli, economist at Romano Group.

Financial dollars, on the other hand, closed higher (the CCL, at $462 and the MEP at $449), despite the official intervention in the bond market, which initially moderated them. In parallel, the BCRA accelerated the official dollar’s rise to a monthly effective rate of 8.19% compared to Friday, while over the past five rounds it climbed to 7.8%. “The frenetic rise of the blue market continues, there are no rational measures, there is no calm”, underlined Andrés Reschini, of F2 Soluciones.

“The electoral calendar increases volatility. Sessions like the ones we’re having, I think are here to stay,” said Paula Gándara, an economist at AdCap.

Source: Clarin

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