The head of the Central Bank acknowledged that “there have been speculative maneuvers” against the market but that they have managed to “normalize it”

After a week of worrying market movements and major turbulence, with a sharp rise in the dollar amid investor pressure and tensions, the head of the Central Bank of the Argentine Republic, Miguel Ángel Pesce, tried to restore calm and ensured that the situation is normalized.

“It’s a complex moment, I wouldn’t say it’s the hardest time of Argentina’s financial situation, “he said during an interview with C5N.

The official recognized him “there have been speculative maneuvers” against the stock market and that the monetary entity has positioned itself as a support for the government to balance the market and has succeeded.

“The Central has proven to be the lender of last resort not only from the financial system but also from the system of government bonds, like all central banks when these maneuvers take place that depress the price of government bonds, and the The plant went out to collect it and we managed to normalize it “He added.

Pesce’s statements come at the end of a week marked by inflation data for May (which was 5.1%) and amid investor pressure and tensions on the local market, which forced the entity to announce a new rate hike.

“We have raised the interest rate. Since the beginning of its administration, the BCRA has proposed that the interest rate received by savers be in real terms, which can beat inflation. We have started to re-dial the rate, we have been doing it since the end of last year and we have taken another step in that direction, “she said.

The Board of Directors of the Central has decided to raise the annual nominal interest rate of the 28-day letters of liquidity (Leliq) by 300 basis points, from 49% to 52%.

This correction is the highest compared to the latest revisions, but lower than market expectations due to the dismantling of debt positions in pesos and an overheating of the foreign exchange market, especially financial dollars.

Pesce also referred to the stock situation after the entity had to sell another $ 200 million to meet market demand amid reports that there will be more restrictions on imports. Demand also grew due to the increase in purchases of energy and gas abroad.

“What the BCRA has done is that currencies are applied to growth, investment, job creation. We are in a situation of shortage of foreign exchange and this leads to the need to manage reserves “, held. And in turn, he reiterated that they rule out the implementation of a new trap.