2023-08-14 22:50:00
The Government will imposefrom tomorrow, a new stocks to the dollar, when adjusting a resolution that imposed last week, to put a cap on market operations that exceed USD40,000 in the purchase of MEP dollars. The measure was reported by the National Value Comission (CNV) and will search prevent large stock buyers from putting pressure on prices of financial currencies, at times of strong market volatility following the surprise electoral victory of the libertarian presidential candidate, Javier Miley.
The measure “establishes a limit of 100,000 nominal values per week for the sale of negotiable fixed-income securities denominated and payable in dollars issued under local and foreign law with settlement in foreign currency, in the PPT trading segment”, according to CNV sources, which means that You can make free purchases in bond pesos, but to sell once morest the dollar you can only make up to 100,000 units per weekwhat they mean regarding USD40,000. The resolution only affects sovereign bonds, such as the GD30 and AL30, the most used to make MEP.
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As specified by the agency, “The 100,000 weekly nominals are equivalent to regarding USD40,000, which is an amount much higher than the average ticket for MEP operations carried out by thousands of people daily”. Statistically, “the average per purchase is USD3,000”. In this way, the economic team will seek to protect small and medium investors, who in electoral times seek to become dollars to protect their savings.
The objective: to prevent the devaluation from becoming liquefied
The objective of the CNV is to “reduce the volatility of the financial market and its impact on the normal functioning of the economy, accompany the efforts to avoid imbalances in the so-called financial dollars and discourage speculative movementsall this without affecting the vast majority of people who perform this operation in a genuine way”.
The resolution will be in force while the circumstances that make its implementation necessary last. and it will be applied for each principal sub-account, for the set of principal sub-accounts of which the same subject was the owner or co-owner and for the set of operations settled in foreign currency”, they specified from the financial regulation body.
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Thus, the economic team led by the minister and presidential candidate Sergio Massa seeks to prevent the effect of the 22% devaluation that was validated on post-election Monday from being liquefieddue to market pressures. Happens that following having closed the exchange rate gap with the abrupt jump in the depreciation of the local currency, the informal exchange rate returned to pressure and recovered the distance between both quotes.
A resolution to take care of the dollars
Resolution 971/23, approved on Monday followingnoon by the CNV Board of Directors, “is issued with the purpose of contributing to a prudent administration of the exchange market, reducing the volatility of financial variables within the framework of the current economic situation”, according to the financial regulation body, on its official page. Thus, The Government continues to adjust the conditions of the MEP dollarfollowing having tried to cut the dollarization loop of large traders with General Resolution 969 of August 2, where “the regulation was perfected in order to guarantee that the volume of negotiation in sovereign bonds in dollars is genuine, eliminating the influence of arbitration and ensuring a more faithful representation of the real transactions of assets”.
In the foundations of the new resolution it was highlighted that “in the current prevailing economic context and within the framework of the recent evolution of the foreign exchange marketit becomes necessary to reduce the volatility of financial variables and contain the impact of fluctuations in financial flows on the normal functioning of the real economy, as well as the impact of the operations implemented in the capital market through the simultaneous purchase and sale of negotiable securities”.
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The move responds to one of the tools that Massa wants to have at hand to be able to control financial pressures and prevent the “black hands” of the market handle the uncertainty generated by the electoral result. According to sources from the Palacio de Hacienda, consulted by PROFILE“the minister will not leave free gaps that allow an uncontrolled run of the exchange rate.” “It has already shown that there is liquidity in the market, it received the support of the International Monetary Fund and it will remain strong once morest financial speculation”, clarified the member of the circle closest to the presidential candidate.
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