Financial day: the free dollar fell to $292 and the BCRA bought USD 150 million in the market

In 2022, inflation continues to take advantage of the dollar.

The financial wheel had an improvement in expectations, product of the appointment of Gabriel Rubinstein as Deputy Minister of Sergio Massa in the Palace of Finance, and also the progress of the Government’s negotiations with leaders of agriculture to promote the liquidation of exports. The stocks and bonds were trading higheran exceptional situation if we take into account the sharp decline in Wall Street, while the dollar quotes outside the “stocks” closed lower.

The Free dollar ended trading this Monday at $292 for sale, with drop of three pesos in the day (-1%). The ticket is still four pesos below its closing value in July, at 296 pesos.

The dollars that are traded through stocks and bonds on the Stock Exchange also fell. The “counted with liquidation”, which had exceeded $307 on Fridayclosed to $300.22 (-7.73 pesos or -2.5%)while the MEP dollar fell to $290, according to data from Reuters.

The dollar in the wholesale segment settled at $136.64, with an increase of 47 cents on the day. The exchange gap with the “blue” settles at 113.7 percent.

Government sources explained to Infobae that there is “expectation of an announcement of aagreement between the Government and the field for liquidations of exports”. In this sense, “the Government, producers and cereal companies work on a scheme to speed up the pace of sales of the harvest” remnant.

In addition, a stabilization in the alternative prices of the dollar was noticed after the Minister of Economy Serge Massa appointed on Sunday the economist and consultant gabriel rubinstein as secretary of Economic Programming, a position that is equivalent to vice minister.

Source: Rava Stock Market.  Prices in dollars.
Source: Rava Stock Market. Prices in dollars.

Federico BrogiSales Trader of Grupo IEB (Invest in the Stock Market), pointed out that “the appointment of Rubinstein is a good news. The dollar has already dropped a little in cash with liqui. Rubinstein has a understand what the problem is current economic situation and is qualified to put together a plan and then also this designation shows that Massa can put together his teamas if it validates a bit his power as his role as a leader” in the Palacio de Hacienda.

“In economic matters, the big question that the market logically asks itself -because it always asks questions- is how far Rubinstein will be able to go and how far he will be able to do the things he wants to do. Rubinstein understands that we must continue within the program agreed with the IMF and that this is essential for avoid going to a hyperinflation scenariofor which we hope that in the short term he will meet with directors of the organization”, added Broggi.

The analysts of Personal Portfolio Investments They also referred to Rubinstein’s appointment and stated that “the renowned economist stated that the highest priority is to end the fiscal imbalance. In turn, he declared that the Treasury should not spend more than its income. In other words, it should not resort to new monetary assistance, which in a context in which inflation is traveling at 7-8% per month, exacerbates the risks of spiralization”.

“If you keep the status quothe fiscal red is aimed at closing the year at 3.5% of GDP -one point above what was agreed with the IMF- The tariff segmentation, announced last Tuesday, only implies a saving of 0.1% of the Product in 2022 , so Rubinstein will have the challenge of making a greater fiscal adjustment”, they added from Portfolio Personal.

The Central Bank made this Monday the largest purchase of foreign currency in the wholesale market since the end of last June. It was USD 150 millionwith which the monetary entity managed to chain eight positive wheels for its foreign exchange participation, a period in which it added USD 280 million. “With today’s purchase, the 2022 numbers are positive again. There was a lot of demand from SMEs and a lot of liquidation, but also little demand for energy,” a market source told Infobae.

Despite these purchases, BCRA reserves fell USD 52 million and ended the day at USD 37,011

“A lower demand to meet energy import payments and higher genuine income justified the positive result exhibited by the Central Bank,” said the operator Gustavo Quintanaof PR Exchange Brokers. Since ABC Exchange Market They noted that “the BCRA ended the day buying 40% of what was traded, continuing its buying streak and being the largest purchase since the end of June.”

The best investor mood moved to stocks and bonds. Although the financial round was very unfavorable in all external marketswith declines of up to 2.6% in the main Wall Street indicators, the Argentine assets managed to decouple of this international bias.

The leading stock index S&P Merval of the Buenos Aires Stock Exchange gained 1%, to a new nominal record of 132,252 unitsafter falling 0.4% in the previous session.

In a context of notorious intraday trend changes, the stock market was at its maximum measured in national currency, a reflection of the receipts with papers tied to the dollar and without much relation to the rise in consumer prices.

The market’s caution is also due to Fed chief Jerome Powell’s upcoming remarks at the Jackson Hole economic policy forum this week.

Regarding fixed income, dollar bonds had gains of 1% on average, based on the benchmark of Global securities with foreign law, while the risk country of JP Morgan, which measures the rate gap of US Treasury bonds with their emerging peers, fell 15 integers for Argentina, to 2,441 points basics at 5:40 p.m.

KEEP READING:

Dollar today: the free price yields and also the “cash with liquidation” due to the expectation of income of dollars from agriculture
Markets: Argentine stocks and bonds rose, on a very negative day for Wall Street
Wall Street remains concerned about inflation and the future of the US economy and opened the week with heavy losses
Unchecked inflation: why buying Uruguayan, Bolivian and Chilean pesos is a good option for Argentines
The BCRA bought USD 150 million in the market, the largest positive balance since June

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