the national government ordered this Thursday a relaxation of the exchange stocks. The National Securities Commission (CNV), together with the Central Bank (BCRA) and the Ministry of Economy decided to eliminate the weekly quota for the liquidation of titles of sovereign debt denominated in dollars under local legislation in foreign currency.
As reported this Thursday by the regulatory entity, the lifting of the measures adopted in General Resolutions No. 907 and No. 911 was determined. Specifically, From next Monday, March 7, the quota of 50,000 nominal and the limit that established that those who operate foreign law titles might not operate with local law bonds will cease to apply..
The decision, argued the entity chaired by Adrian Cosentino, has “the purpose of contributing to the development of the capital market and transparency in the areas of trading and settlement of regulated markets“. The measure, it should be remembered, comes within the framework of the agreement with the International Monetary Fund (IMF), which is expected to enter Congress this Thursday.
Both revoked regulations, they added from the CNV, had been issued in response “to exceptional circumstances and on a transitory basis, in order to avoid elusive operations, reduce the volatility of financial variables and contain the impact of fluctuations in financial flows.” regarding the real economy.
“They lifted the restriction that the Alycs had to operate the weekly quota of 50,000 nominal, which at today’s prices is equivalent to regarding US$18,000.“, resume un trader of a local stock company. “That meant that, on the screen, the entire flow of operations might not be specified. Now companies will be able to buy unlimited currency in that market“, aggregate.
“If they do, it’s because they see that the market is going to puncture. Anyone who wants to buy dollars that way will be able to do so, but the expectation is that with the agreement with the IMF, there will not be as much incentive because the upward path will be interrupted“, aadi.
On the other hand, he also recalled that with the introduction of the Notaliq, the BCRA managed to transfer many of the pesos that had been allocated in short-term instruments to others at six months. “That also means there are fewer pesos on the market,” he said.
Regarding the second point, established that those who operate foreign law titles might not operate with local law bonds and vice versa for 30 days, from a local bank they explained: “Before if you did MEP with AL30 you mightn’t also do with GD30, because at one point there was a roll that was done by buying with the AL30 and selling with GD30, when the Government intervened in the price of the AL. But now it no longer made sense for me to follow that restriction.”
