Miguel Pesce and the impact of the crisis: meetings with banks and also with food companies

While a certain calm seems to begin to take shape in the local exchange rate scenario after the shock caused by the exit from the government of Martín Guzmán, the president of the Central Bank closely follows the activities of the banks. Previously he met the entities grouped in Abappra and another meeting with Adeba, all of the national capitals, is scheduled this afternoon.

In addition, he had lunch with the food, in an appointment already scheduled before the new gear adjustments. BCRA sources commented: “Historical restrictions on growth were discussed and how both external and energy restrictions are overcome.”

The central banker “explained the significance of the payment administration measures and the desire to improve regulation to overcome the inconvenience that may occur in the production chains”. At this point, for example, the situation of imports with seasonality, low value inputs and high incidence in production and the temporary import regime was raised.

“Pesce also expressed the BCRA’s commitment to defend the value of the Treasury’s debt, which is essential to advance in the development of the basic capital market also for private sector financing”, they indicated.

Miguel Pesce wants to monitor how the financial activity develops in the midst of the crisis. as far as he could tell Clarione Pesce ratified the defense of the bond price and said the foreign exchange market it will tend to normalize.

The financial dollar fell Wednesday for the second consecutive day, but analysts warn that the central bank is behind this “normalization” of prices. The monetary authority has already made purchases of over $ 1 billion to stabilize the debt in pesos and according to exchange traders, it is now coming out to rein in parallel dollar prices.

The central banker also wanted to monitor the evolution of dollar deposits. Entities commented that on Monday, still in the uncertainty due to the new economic team, there were withdrawals in the branches, but that the situation normalized as the week went by.

Meanwhile, entities are concerned about the latest rule issued by the central bank board of directors last Thursday, before Guzmán’s departure, which reduces minimum liquidity levels in banks. In particular, regulation A 7536 reduces the compulsory reserves on term, legal and other deposits with public entities from 7 to 8 percentage points.

At the same time, it authorizes entities to use more Jar 27, a Treasury bond, but less Leliq for fixed-term deposit reserves. It also allows them to use Leliq and Treasury Bonds for sight deposit reserves.

Analysts warned that the measure indirectly exposes entities to a higher “treasury risk”, amid growing mistrust of the sustainability of the pesos debt.

Pesce fell on his feet in the massive wave of resignations in Alberto Fernández’s economic team. It also emerged that it was he himself who approached the president with the name of the current Minister of Economy, Silvina Batakis. On Monday, after ruling out an exchange and / or a public holiday, Pesce met with the banks assuring them that the organization will continue to “defend” the value of local currency bonds.