Debt in pesos: Pesce will meet with the House of Mutual Funds to try to stabilize prices

As the minister Martín Guzmán previously anticipated, the president of the central bank Miguel Pesce on Monday he will meet the representative of the Argentine Chamber of Mutual Fundsto agree on a strategy that return stability to the pesos debt segment.

After the exit of the positions of these funds in index-linked debt in recent weeks, which caused inflation-linked securities fall by more than 25% eso far this month, the government is working for bring calm to this marketkey to the Treasury’s spending financing strategy.

“The president of the Central Bank of the Argentine Republic (BCRA), Miguel Pesce, will meet today Valentín Galardi, president of the Argentine Chamber of Mutual Funds (CAFCI) to analyze the mechanisms that guarantee the liquidity of the Treasury’s instruments and the support of their prices, “the monetary authority said in a brief statement.

The meeting takes place hours before Guzmán faces a real test in the domestic debt market: This Tuesday the Treasury will seek to refinance maturities of $ 243 trillion. “The BCRA will maintain the strategy of intervening to guarantee the yield curve of the bonds in pesos”, assured the organization in line with what was anticipated by the minister.

“The debt in pesos is a pillar, an anchor for the functioning of the whole system”Guzmán said in an interview with Radio Con Vos, “The BCRA has given a very clear message, That it will do whatever needs to be done to ensure that the public pesos bonds are a safe tool. Actions are underway to continue strengthening the pesos market “, anticipated the head of the Palacio de Hacienda.

“We will continue to work to convert Treasury bonds into the safe asset of the economy. We will make sure that the Treasury instrument is safe and superior to that paid by the Leliqs,” Guzmán said.

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