For the second consecutive round, This Thursday the parallel dollar fell sharply again. As already happened in the previous one, the prices available on the stock exchange fell, accompanied by a new drop in the price of blue. The bill came to $1,075 on the street$30 lower than Wednesday’s close and a value it hasn’t seen since Jan. 8.
He cash with balance fell another 1.8% to accommodate the $1,154 and so far this month it accumulates a loss of 7.6%. In case of Dollar MEPor stock market, the price reduction was more abrupt: the so-called stock market dollar fell by 2.6% and stood just below the $1,095.
While there are multiple explanations for this new strength of the Argentine peso, including the appreciation of other currencies in the region against the dollar, the idea of a “dry peso market” can serve to summarize them.
Among investors, the demand for local currency notes to participate in tenders from the Central Bank and Treasury caused sell-offs. The same happens with importing SMEs who, starting this week, can access the free exchange market to obtain dollars with which to pay the debts contracted with their suppliers during the previous administration.
Selling dollars to survive in pesos
The monetary squeeze is being felt among savers and businesses. The escalation of inflation, which has exceeded 45% in the last two months, is squeezing pockets and margins, which is why many They turn to sales to be able to meet their peso obligations.
The gap with the official dollar is narrowing again: in the case of cash with liquidity it reaches 38.8%.
In the wholesale segment the Central Bank managed to get dollars again at the same time was able to place 1,170 million dollars in the bond auction with which it intends to cancel the debt with the importing sector, Bopreal. “We expected higher demand and even oversubscription. Perhaps the uncertainty regarding the depth of the secondary market still raises concerns,” said Javier Casabal, Fixed Income Strategist at ADCAP Grupo Financiero.
“At the same time, the fall of the CCL could generate opposite incentives to enter, as happened at the beginning of January with Series 1. Next week, when they start to see Merchants in the secondary market, uncertainty should decrease“He added.
Aurum Valores analysts highlighted at the close of the round: “Today’s monetary result continues the positive trend that has been demonstrated so far this year, with the purchase of 126 million dollarswhich adds to yesterday’s $255 million, for a total of $1,151 million purchased in the MULC so far in February and consolidating a total of $7,319 million in purchase balances since he took office. Javier Milei as president”.
“These purchases partially respond to the IMF’s request to add $10 billion to reserves hospitalizations this year”, they recalled.
In this context, in futures marketTHE prices dropped again. Investors now see a lower probability of a new devaluation in the near term.
The weight force was accompanied by a new recovery of the debt market. Argentine bonds closed Thursday with increases of more than 4% and the country risk dropped to 1,895 points.
Source: Clarin
