Friday passed with disparate movement in the various segments of the local financial market, when agents are still evaluating the effects of the sharp rise of almost 10 points in the monetary policy rate of the Central Bank, the largest in three years following learning that the July inflation reached 7.4%the highest monthly figure in more than 20 years.
With that context, the free dollar negotiated this Friday with falling of the pesos, at $295 for sale, in a moderate downward reaction following the large rise in yields in pesos, whose effective annual rate approaches 100 percent. This descent was not accompanied by stock market paritieswhich ended with a slight rise in the “cash with settlement”, $289.44, and the MEP dollar traded at $281.03, according to data from Archyde.com.
The wholesale dollar gained 32 cents to $134.59 for sale, with a exchange rate gap of 119.2% once morest the “blue” dollar. In a session with a small amount operated in the cash segment (spot) of USD 162.6 million, the Central Bank managed to chain the third session in a row without sales in the wholesale market.
“Today is the third round in which the BCRA does not need to attend the market – this time with a favorable balance of USD 1 million– where there was an energy demand of the order of USD 50 million”, confided a market source.
At the beginning of August, the BCRA accumulates sales in the interbank market for some USD 829 million dollars. The monetary entity faces a negative 2022 in the exchange market with net sales of USD 208 millionwhen it had obtained a net balance in favor in the same period last year of regarding USD 7,295 million as of August 12, 2021.
In this sense, the Government asked grain processing and export companies to carry out exports equivalent to USD 1,000 million during the next week, as it seeks to strengthen reserves, as reported by Bloomberg.
Participating in the discussions are the Minister of Economy, Serge Massathe chief of customs Guillermo Michelthe incoming vice president of the BCRA, Lysander Cleriand the president of CIARA (Chamber of the Oil Industry of the Argentine Republic) and CEC (Cereal Export Center), Gustavo Idigoras. Massa declared on August 3, upon taking office, that he would work to ensure that exporters generate USD 5,000 million in the next 60 days.
The BCRA raised its reference interest rate by 950 basis points to 69.5% annual nominal. In addition, the rate of retail fixed terms, went from 61 to 69.5 percent. For the rest of the fixed-term deposits of the private sector, the guaranteed minimum rate is established at 61 percent.
The INDEC communicated the day before that it registered in July an inflation of 7.4%the highest rise since April 2002. Maximiliano Donzellihead of Research at IOL (InversiónOnline) stressed that “the key figure was core inflation, which marked a monthly increase of 7.3%, a strong increase compared to the 5.1% that marked in June, being the fifth consecutive month above 5%. Thus, it can be seen that inflation showed a worsening in its own dynamics since this indicator does not capture the most volatile prices in the economy. For their part, regulated prices were below the general indicator, at 4.9%, giving evidence that they will have a greater impact in the future as the rate increases begin.”
YPF gained 7.8% on Wall Street
The shares of Argentina ended trading with gains this Friday, still awaiting definitions on the implementation of economic measures announced by the new Minister of Economy, Serge Massa, which will seek to channel the public accounts of the country. In that sense, dollar bonds resumed their declines in the face of unconvincing fiscal numbers.
The leading stock index S&P Merval of Buenos Aires gained 2.2%to 125,979 units in a selective market, following closing with a rise of 1% on Thursday.
For their part, the foreign markets improved in the face of signs of lower inflationary pressures, which propelled gains in world stocks. Wall Street indices advanced between 1.3 and 2.1 percent. In the week, the New York markets gained regarding 3% to complete a month of recovery in prices.
As for ADRs and Argentine shares traded in dollars on Wall Street, they operated with the majority of increases, led by YPF (+7.8%at USD 4.41) and Southern Gas Carrier (+5.7%). One of the most relevant points was the presentation of quarterly balance of the state oil company, where it reported a net profit of 94,063 million pesos. In this way, he managed to overcome the fall of $ 46,262 million recorded in the same period last year.
The prices of bonds in dollars fell 0.4% on average, according to the reference of the Globals with foreign law, to maintain a negative bias of 1.1% in the weekly course. The risk country of JP Morgan rose 16 integers for Argentina, to 2,458 points basics at 5:10 p.m.
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