Financial tension: the dollar was counting on liquidity, the blue ranks and the country risk skyrocketed

The whirlwind generated by the fall of pesos bonds on the local market occurs in the midst of a storm on the international markets. Thus, on a Monday that started and ended in the red for the main Wall Street indices, Argentina’s financial variables were under stress. Financial dollars and the blue rose and country risk have skyrocketed.

With an eye on the collapse of international equity markets, local investors remained attentive to the signals that the government can give to dispel fears of a possible re-profiling of the debt in pesos, the tool used by Martín Guzmán to be able to finance spending without appealing to the monetary question of the Central Bank.

The economy minister has again ruled out radio statements that a default on this debt is a possibility his government is considering, but even soWe have seen increased demand for the dollar. The counted with liqui, the exchange rate used by companies, which woke up last Thursday after weeks of relative calm, it was up $ 10 on a single wheel and, while it hit $ 240, it finished at $ 237.47, its highest face value.

The other financial quote, the MEP dollar. followed suit and climbed $ 9.09, up 3.7% to finish at $ 229.09. From a lower notch but with the same momentum, the blue dollar rose $ 6 to $ 216.

As Juan Pablo Albornoz of Ecolatina explains, “what we are seeing is a rotation of people, funds and companies that were stuck in CERs and Treasury bonds towards the financial dollar and the blue that gradually ends up settling down”.

Albornoz observes: “Mainly, we see silver movements in white, that’s why the CCL and the MEP rose so strongly, and not so much blueAnd. But these quotes are arbitrated and this causes the movements to go hand in hand. “The question now is whether this tremor in the foreign exchange market can last for several days.

In the game of City in the CCL he still has a lot to gain. “In the worst moment of 2020, cash with liqui has come to exchange, at today’s values, close to $ 300 and the exchange rates very decoupled from the evolution of the remunerated liabilities of the Central Bank “, indicated in the advice 1816.

“It will all depend on whether the weight market is able to recover some stability. If not, we will continue to be guided by monetary fundamentals,” they advanced in PPI. “Clearly what happens with the free dollars will be a direct consequence of the evolution of the Treasury debt,” they added.

The Central Bank has once again appealed to its strategy go out and buy debts in pesos to put a limit on prices, even if the amount of these operations was not disclosed. A market participant reported to this medium that the monetary authority intervened in the shortest terms of the curve and that there were strong rumors about its participation in the operation of the instruments that the Treasury is putting out to tender this Tuesday.

The punishment was severe in the dollar debt segment. ItThe public securities entered into the swap seem not to find a floor and closed with falls of between 3%, for the shortest sections of the curve, and over 4% in the medium and long sections. With this scenario, the country risk rose by 3.4% to 2,113 pointss, the highest score since September 2020.

In the midst of these tensions, and in a context of global dollar appreciation, the Central Bank had to validate the highest one-day hike in the wholesale exchange rate in nearly two months. Thus, in the single free foreign exchange market, the US currency closed at 122.30.51 cents higher than the previous settlement.

However, the monetary authority could earn $ 25 million in this segment, the highest daily figure since the beginning of the month. So far, in June, the body headed by Miguel Pesce has bought just over $ 50 million.

After the closing of the trading day, Pesce’s visit to Casa Rosada attracted attention, but BCRA sources stressed that the presence of the central banker in the Presidency is due to “bureaucratic” management problems and there were no meetings. with key figures from the Cabinet. Alberto Fernández, they said, was not at Balcarce 50 at the time.

However, all eyes are on the joint strategy implemented by the Central Bank and the Treasury this Tuesday, when the Inflation data for May and the first peso debt auction comes after the massive outflow of funds from index-linked bond positions in recent days.