The blue dollar advanced to $492 and the exchange rate gap was stretched to 110%

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In another round with stable financial dollars, the blue dollar took a step forward and climbed two pesos, to stabilize $492, while the cash with the liquid has run out $495. This quote extends the exchange rate gap with the official dollar to 110%.

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So far in Maycasual has increased by 25 pesos and accumulates an advance of 149 pesos since the beginning of the year, equal to a jump of 42%, almost on par with estimated inflation in the first five months of 2023.

CCL, how companies use to become dollarized, increased 0.3%, $495.3, while the MEP dollar traded on the Buenos Aires Stock Exchange rose by 0.4%, $466.​

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The central bank managed to buy $14 million on this wheel, which leads him to reach a positive balance of 196 million dollars. With just four business days left on the dollar, soybeans 3 came in at $66 million this Wednesday and are up $3,240 million since this mechanism began on April 10.

The stability that financial dollars have shown so far this week proves it the government continues to intervene in this market, to prevent prices from skyrocketing and increasing pressure on inflation.

According to Portfolio Personal Inversiones (PPI) estimation, this intervention required $705.5 million from 25 April

Although with this tactic the government manages to prevent alternative dollars from escaping above 500 pesos, it does so at great cost in a context of foreign exchange shortages and with the Central Bank’s net reserves at a record low of US$ 1,750 million.

Despite the effort, with this intervention The government fails to reduce the exchange rate gap and bring it below 100%which in turn maintains market uncertainty.

Nicolás Simonetti, Business Officer of Liebre Capital, points out that “the trading week started stable against financial dollars after the 7% jump recorded last Thursday, MEP dollar at $465 and CCL dollar at $494”.

Positive information from the last few rounds is that the MATBA-ROFEX dollar futures curve showed declines of between 2% and 6% in the months of August to April next year. “However, this does not clarify what the market has priced in since August, a moderate jump in the dollar, a nominal annual rate of devaluation of 140% implied in the exchange rateor A3500 which is above the crawling peg depreciation rate of 75% to 85% of the nominal annual rate,” Simonetti added.

Merval rose 0.5%, while YPF was the largest of Argentina’s Wall Street-listed stocks, up 3.5%.

Within the fixed income segment, dollar bonds have traded up and down, up as much as 3%. At the same time, country risk, JP Morgan’s measure of the excess cost of Argentina’s debt, fell 0.1%, to 2,576 basis points.


Source: Clarin

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