The Central Bank purchased others 55 million dollars this Thursday and it’s already adding up 1,053 million dollars so far in October, which helps the government replenish reserves achieved at the gross level 29,045 million dollars.
Behind Central’s good performance is the whitewash effect, which has contributed so far $13 billion in deposits, which generates a positive financial flow through deposits and credit growth.
Along with this, the stability of the exchange rate With peso rates already above monthly inflation, they encourage exporters to liquidate foreign currency and importers to delay demand for dollars.
Therefore, the persistence of “carry trade” This gives the Central Bank the possibility to continue buying in the months in which, due to seasonality, it should sell.
With that, there are 19 consecutive unsold wheels and October is shaping up to be the best-buying month for Central since May, when it had 2,532 million dollarsin the midst of the liquidation of the large harvest.
THE 1,053 million dollars what he has accumulated so far allows him to count the best positive October balance in the last fifteen years, when there are still five wheels left to close the month. By October 2009 it had grossed $1,472 million.
The Central Bank’s purchases thus become the support that continues to prolong the summer of exchange rates that began in August.
In the last three months the prices of alternative dollars have fallen and therefore the exchange rate gap has narroweda decisive factor for stability to assert itself.
This gap, which measures the distance between the wholesale dollar and parallels, reached 50% in July, when liquid cash price was close to $1,500, and today it is at 18%, with the CCL at $1,500 . $1,179down 0.3% from Wednesday’s price.
In this round, 0.5% of the MEP also lost, $1,157, while the blue lost 15 pesos $1,215.
The purchases of the last few days have allowed an increase in gross reserves 530 million dollars.
Since the beginning of Javier Milei’s management, Central has been purchased 19 billion dollars. Of this amount, only a portion went to gross reserves, which reached $21 billion on December 10 and now exceed $29 billion.
Part of the dollars purchased by the Central was used to intervene in the market and pay debts. Furthermore, gross reserves also vary based on the price of gold, yuan and dollar deposits. Net reserves, which measure the plant’s firepower, remain negative and amount to about $6 billion.
Another element that plays in favor of central purchases and the accumulation of reserves is the increase in dollar credits. “As far as loans go, there is room to continue to grow. They have only increased 1,308 million dollars since recycling started to have a stock of “7,869 million dollars”underline from Portfolio Personal Investments (PPI).
“If lending increased, this would translate into more supply in the MULC (Single Market and Free Trade). Therefore, the BCRA could continue to extend its purchasing spree and, as a result, Net reserves continue to improve. Thanks for your purchase 1,349 million dollars Since mid-September at MULC, net reserves have increased compared to estimates From -$7,914 million to -$6,962 million,” the PPI says.
“The BCRA’s buying spree continues to add reserves, even when more challenges are expected due to seasonality, and this continues – along with favorable signals on the disinflation process – contributing to the appetite for peso placements. Here’s why financial dollars remain virtually stretched, after the decline of recent months, although the narrowing of the gap could resume if the slowdown in inflation worsens”, says economist Gustavo Ber.
The currency summer is also being felt on Argentine assets. In this round, dollar bonds rose by an average of 2.5%, which brought the country risk to 1,036 basis pointsthe lowest level of the Milei era. At the same time, Merval rose 4.3% and in New York ADRs rose to 9%.
Source: Clarin
