Dollar today: the free price falls for the third session in a row and trades at $287

The exchange market, attentive to the announcements that Sergio Massa will make.

The recent political signals contributed to the exchange relaxation and the free dollar continues this Monday in decline for the third consecutive round. The currency is offered to $287 for salewith a drop of nine pesos or 3% compared to Friday’s close.

In the wholesale segment, the dollar advances 68 cents, to 131.95 pesos. The exchange gap with the “blue” is reduced to 117.5 percent.

The free price of the dollar ended July at $296 for sale. In the course of the month he won 58 pesos or 24.4 percent. However, it is down 15% from the intraday record of $350 on July 22.

Meanwhile, the price of dollar in the wholesale market advanced 4.8%, about six pesos, to $131.27, with an exchange rate gap of 125.5% compared to the “blue”, and also compared to the inflation rate estimated for the month by the consensus of the consultants around 8 percent .

In JulyCentral Bank had a Negative net balance due to its intervention in the foreign exchange market in the order of USD 1,275 million the largest since September 2020, before the application of the 35% tax as an advance on Profits to discourage retail demand for dollars.

So far in 2022, it accumulated net purchases in the wholesale market for some USD 596 million, an amount that represents 8.2% of the net balance in favor obtained in the same period last year, which accumulated some USD 7,284 million at July 29, 2021.

International reserves decreased last week by some USD 1,474 million and ended on Friday at 38,240 million dollars. In the month of July, reserves fell by more than 10%, some USD 4,544 million, an amount that included the payment of USD 1,286 million to the IMF, made with the SDRs that the agency itself had sent, and USD 426 million for the payment of interest on the 2020 restructuring bonds.

In addition, private sector cash deposits in dollars lost more than USD 800 million in July, to return to November 2020 levels, at USD 14,693 million as of July 27, the latest data available.

According to the latest Exchange Balance of the BCRA, individuals bought USD 577 million in net form in June, basically for expenses made with cards for consumption with non-resident suppliers (USD 375 million, with an increase of 17% compared to the previous month ) and for hoarding (USD 157 million in banknotes, a level 21% higher than the previous month). Likewise, institutional investors and others, both residents and non-residents, made net purchases in the month for 72 million dollars.

Sergio Massa will assume his position as minister once the removal of his bench as deputy is formally resolved. It is scheduled for this Tuesday.

It is estimated that on Wednesday he will announce economic measures, whose main axis will be obtaining dollars and fiscal austerity. According to journalistic media, Massa is studying adopting incentive measures to encourage exports, seeing case by case the granting of tax incentives for foreign sales from different sectors.

Near the end of the month, he would travel to the US where he would hold meetings with authorities from the US Treasury, the State Department, the IMF and investors. He also plans to go to Paris to meet with the representatives of the Paris Club to discuss the renegotiation of the debt that the country maintains with this group.

KEEP READING:

The 4 reasons that turned the dollar and made bonds rise: why the tailwind was more decisive than the “Massa effect”
Unsustainable “Crawling Peg”: Why the Central Bank’s Gradual Devaluation Strategy Is at Risk
Free dollar below 300 pesos: can it continue to fall?
Stocks and bonds had a positive balance in July, and the free dollar that shot up 24%
Massa would formalize the exchange split, but for now he does not have in his plans to devalue

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