A woman puts dollars into a banknote counting machine. Photo EFE / Mauricio Dueñas Castañeda.
News in development
Pending the announcement of new economic measures this Monday the alternative withdrawal of the dollar continuedwith blue going for $ 282 and financial dollars under $ 280.
However, at the beginning of the week, the foreign exchange market operated in minimal amounts and this led the Central Bank to start the month with a turnover of 110 million dollars to meet the demand of energy importers.
Cavallo believes that Massa could double the dollar and proposes a strategy to obtain 5,000 million dollars
For former Economy Minister Domingo Cavallo, the new head of the Palacio de Hacienda Sergio Massa has tools he could immediately use in an attempt to contain the crisis in which Argentina has plunged. His proposal contemplates two aspects: on the one hand, to go to a split of the dollar and, on the other, to sell the shares of the Sustainability Guarantee Fund to shore up the reserves.
The father of convertibility has long argued that if the market opens, not many dollars will be sold. And in numerical terms, he assures that if the government sells those shares of FGS, he could make about $ 5 billion.
For Cavallo, if Sergio Massa begins by recognizing that it will be necessary to make a fiscal adjustment to reduce public spending, “even greater than that engaged in negotiations with the IMF”, and directs monetary policy to close the exchange rate gap and accumulate reserves “It is possible that he will be able to limit inflation over the remainder of the presidential term to 6% per month or 100% per year without there being a violent decline in the level of economic activity.” According to him, “it’s the best result I could get”. Read more.
Ana Chiara Pedotti
Sergio Massa negotiates a loan with international banks to strengthen reserves
Before stepping down from the presidency of the Chamber of Deputies on Tuesday and presenting his economic plan at a press conference on Wednesday, Sergio Massa has accelerated negotiations with a group of international banks to obtain what is known in financial jargon as “repo”, to make dollars that are the basis of the meager reserves of the Central Bank.
The Economy Minister has reportedly advanced in talks with three international banks and a UAE sovereign investment fund, which may be interested in lending the country, at a rate Argentina cannot obtain today. to finance itself and in exchange for some real guarantees, taken as collateral. Read more.
Ana Chiara Pedotti
In the midst of a whirlwind, there were stocks that earned more than the dollar’s jump in July
Beware of economic news, Argentine bonds extend their rise this Monday, with leaps of nearly 10%, as in the case of Bonar 2041. Thus, the country risk measured by the JP Morgan bank remains in the area of 2.394, far from the record of 3,000 which scored last week.
Marked by changes to the Ministry of Economy, July was like a roller coaster for Argentine assets. Political uncertainty fueled the peso run that began at the end of the previous month and the parallel dollar closed with strong gains. However, in the last few days of the month the informal exchange rate fell from the highs.
The blue dollar continues to fall: on Monday it fell 14 dollars and stood at 282 dollars
The market showed two faces in the first round in August. On the one hand, the pullback of the alt dollar continued, with the blue dollar climbing to $ 282 and the financial dollars below $ 280, while the bond rally continued.
The foreign exchange market, on the other hand, operated in minimal quantities and this led the Central Bank to start the month with a turnover of 110 million US dollars to meet the demand of energy importers.
The “mass effect” continued to be felt on alternative dollars: the blue dollar fell 14 pesos on the day to close at $ 282, while the cash dollar closed at $ 279.8 and the MEP dollar at 274. 5 dollars. Read more.