Financial day: the free dollar rose to $1,245 and the Buenos Aires stock market saw a modest recovery
During the day on Friday, the greenback advanced 1.2% to close around $1,245 as supply eased in a market that had been a bit livelier heading into the end of the month.
Meanwhile, in the financial segment, the currency operated without a defined trend. While Cash with settlement left around $1,229 Member of the European Parliament Again, it was down slightly by 0.15% to settle at $1,207.88.
Argentina’s financial markets showed mixed trends on Friday, the day after Treasure it will not be able to fully repay the debt for approximately 7.2 trillion pesos with internal financing, which is equivalent to almost 7,440 million dollars.
It should be remembered that due to repeated financial crises – with high inflation – and social crises – poverty of 52.9% – the government has cut off access to external credit and maintains a $44,000 million deal with International Monetary Fund (IMF) in exchange for meeting quarterly targets.
In this context, the leading S&P Merval stock index rose 0.71% as an interim close due to portfolio reshuffle after accumulating a 7.11% decline in the previous five consecutive sessions.
A day earlier, Argentina placed an effective 4.78 trillion pesos (about $4,935 million) worth of treasury bills in a tender for 11 maturity refinancing instruments with bids for 5.76 trillion pesos.
“Although 100%. ‘overturning‘“This is due to banks’ demand for liquidity due to the increase in private credit, known as the ‘Anker point’,” said a market analyst.
Economy Minister Luis Caputo recently said that the “Anker point” (shortage of pesos) has finally been reached. “The peso shortage ‘officially’ started as a result of zero emissions versus increased demand for money and credit,” he noted.
The government is banking on ambitious money laundering efforts to attract new funds to revive the domestic economy.
“Laundry is at its best,” Portfolio Personal Inversiones said, adding that “private sector dollar deposits soared by 1,338 million on Tuesday, the largest daily increase on record.”
Wholesale exchange operations remained with liquidity controlled by the company central bank (BCRA) under a ‘crawling peg’ (devaluation) by 2% per month at balanced levels of 967 units per dollar.
“In order to accumulate reserves, money laundering appears to be a tool of the government,” Wise Capital said, adding that “in recent days, dollar deposits have jumped (…) but this has not had an impact on reserves as banks have decided to send only a portion of new BCRA deposits as minimum reserve requirements and keep the majority in their branches.
BCRA, which has negative net reserves, has amassed $256 million in dollar purchases in the market so far in September, after purchases of $75 million recorded during the day, but its international reserves ended a million lower than on Thursday. 29,162 million USD on account of payment of imports and other liabilities.
With Monday remaining in the month, BCRA has accumulated $2,445 million during September and $6,091 million so far this year.
Businesses in the small but benchmark marginal or “blue” market were agreed slightly depreciated at 1,245 to the dollar, compared with a low of 1,500 units seen in mid-July last year.
Argentina’s sovereign risk as measured by JP.Morgan rose 10 points to 1,311 basis points (2000 GMT), reflecting a 0.5% decline in government bonds traded on the local over-the-counter market.
“With country risk oscillating at 1,300 points, bonds have a good prognosis,” the operator said.
With information from Reuters