The calm that alternative dollars had shown in recent days It was discontinued this Monday after the government canceled the tax chapter of the omnibus law.
The news that the government will not have the tools with which it tried to increase revenue (increase in withholdings, income tax refunds, money laundering) has worried the market, which sees this as a retreat in the economic team further obstacles to achieving the goal of achieving a zero fiscal deficit this yearas agreed with the Monetary Fund.
The blue dollar increased by five pesos, $1,225while cash with liquids and MEPs increased by 2.6%, a $1,264 AND $1,219respectively.
“Locally, the day started with strong selling pressure, where it was difficult to find buyers. However, During the day that pressure dissipatedwith most listings reducing initial losses,” Proficio Investments said.
It wasn’t just alternative dollars that were shaken by the government’s capitulation. It also affected bonds and stocks. At the start of the round, several Argentine newspapers reported sharp declines, which narrowed as the day progressed.
Merval finished with a decline of 2.6% in dollar terms, a pause in the 3.8% rise recorded throughout January in this currency.
In New York almost all ADRs have decreased. The most pronounced decline corresponds to BBVA with 3.9%.
Among bonds, the decline was between 1 and 2% for dollar securities, although the AL 41 lost 3.9%.
“Argentine stocks fall between 4 and 6% and bonds at least a little more than 2% in the Wall due to the removal of the tax part of the omnibus law. It is almost impossible to achieve fiscal balance without raising taxes“said economist Miguel Kiguel.
This Monday the Central Bank bought foreign currency again: it took $84 million on the day for a total of $3,116 million so far in January. After the devaluation, the purchases have already arrived 5,978 million dollars.
Source: Clarin
