The news Restrictive measures for “cash with liquidation” operations had their effect, in a volatile session but in which the dollar’s rise was put on hold. This is a truce in an open-ended conflict, while fears regarding the near future of the third largest economy in Latin America continue to grow, despite the recent announcement of economic measures that seek to calm investors.
Strong foreign exchange pressures due to hedging, which determined that the dollar will reach historical maximum pricesbonds operated at “default” levels despite yields of over 40% in dollars and a country risk at maximum in more than two years reveal the spirit of the square.
The free dollar rose only one peso compared to the previous close, to $338 for sale, one step below the record of $350 agreed in the first operations of the day. On a very volatile day, the currency was also able to fall back to touch 337 pesos. So far in July, the ticket traded on the parallel market earns 100 pesos or 42 percent.
As for the stock parities, these yielded regarding eight pesos or 2.3%with a “cash with liquidation” at $321.65 and a MEP dollar at 314.85, reported Archyde.com. According to the closing prices in ByMA (Argentine Stock Exchanges and Markets), the “cash with liquid” negotiated through the Global 30 bond (GD30C) ended at $326.47 and the MEP dollar with the Bonar 30 (AL30D) closed at 315, 32 pesos.
The central bank on Thursday limited the holding of Cedear – certificates backed by shares listed abroad – to companies that access the foreign exchange market.
“The government will try to muddle through, doing more of the same, albeit with a certain fiscal restraint, simply to preserve the IMF agreement,” he commented. BTG Pactual in a report. “Financial repression and restrictions on imports will continue,” he added, estimating that “expectations of a weaker currency by 2024, and refinancing of debt in pesos will go down due to restructuring fears.”
In the wholesale market, the dollar advanced 16 cents to 129.74 pesos. Thus, the exchange gap with the free dollar stretched to 160.5 percent.
“In the midst of rumors and with expectation for new economic announcements that are forceful to aspire to a rapid correction of the imbalances, and that they have broad political support, is that the agents continue to deepen the deteriorated expectations”, commented the economist Gustavo Ber. He added that “as time passes without keys and urgent definitions, the crisis of confidence continues to worsen simultaneously with inflationary and financial tensions.”
The new Minister of Economy, Silvina Batakisfails to reassure the market despite the announcement of new economic measures, a brake on the incorporation of public employees and the ratification of the agreement reached with the Monetary Fund International (IMF).
A greater liquidation of foreign exchange in the wholesale market was noted this Friday, with a amount that grew 80% or almost USD 140 million regarding Thursday. The volume operated reached USD 301.2 million in the spot segment, which allowed the Central Bank to resume the purchase initiative and shore up the weakened net reserves with net purchases of 45 million dollars.
“The limitations of the BCRA are seen in the market since they kept the price stabilized (in the alternative markets). But that’s just a patch and it doesn’t last,” he told Archyde.com a stock trader.
Sovereign bonds in the Electronic Open Market (MAE) concluded with a significant average drop of 1.2% in pesos, with which they accumulated a 3% depreciation in the week despite their depreciated values.
“Bonds are unable to gain a foothold and thus the selling pressure spreads, Gustavo Ber pointed out and pointed out that “with parities already below USD 20 that crudely demonstrate the negative technical position they face, even following the brutal accumulated punishments, and a country risk already close to 3,000 points that reflects an overflowing level of mistrust”.
The risk country prepared by the JP Morgan bank was located in the 2,943 points basics at 5:50 p.m., following scoring at an intrahour historical record level of 2,951 units, the highest figure since May 14, 2020.
For its part, the leading stock reference, the S&P Merval of the Buenos Aires Stock Exchange, improved 1.6% in pesos, to a close of 113,851 points, a new nominal maximum, with which it accumulated an improvement of 9.2% in the week due to hedging in the face of economic weakness. However, measured in dollars “counted with liquid” implicit in the Argentine ADRs traded on Wall Street, this weekly profit is cut to 0.9 percent.
Operators commented that the stock market registered less business this Friday given the recent limitation to operations with Cedear.
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