Financial day: the free dollar reached a new record and the BCRA had to sell USD 120 million in the market

The rise in the dollar reflects the uncertainty about the future of the economy.

Investors’ doubts about the economic future continue to be reflected in greater pressures on the exchange rate, also in the rise of shares as a hedge and the outflow of dollars from reserves. This Tuesday the free dollar touched an intraday record of 302 pesoswhile the stock market “counted with liqui” came to be operated at 311 pesos.

These maximums gave continuity to a price spiralization process that began on June 8, with the dismantling of private fund portfolios that were positioned in Treasury bonds in pesos, mainly in issues indexed by CER.

The redemption of these titles from the Central Bank involved a monetary issue of more than one billion pesos in six weeks and part of that liquidity was destined for the search for dollars as an investment refuge. Added to this were others COP 477,000 million for Temporary Advances issued by the BCRA since June 10 to cover the Treasury deficit, in total, an injection of $1.5 trillion or 2.3% of GDP that fueled expectations of inflation and devaluation.

The free dollar, which on June 8 cost the same as at the end of 2021 ($208) climbed 93 pesos or 44.7%, to $301 for sale at the close of this Tuesday. And the stock market “counted with liquid”, of reference for companies, climbed 94 pesos or 44.5 percent.

This Tuesday, the “counted with liquidation” through the Global 30 (GD30C) scored a new record of $311 at 4:10 p.m., to finish trading at 303.80 pesos. The MEP dollar with the Bonar 30 (AL30D) reached 297.14 pesos.

Meanwhile, the wholesale dollar gained 23 cents, to 129.14 pesos. The currency gap between the wholesale dollar and the parallel settles on the 133.1 percent.

“The actual financial stressthat increases the risks of a currency jumpit helps to contextualize the ratification of the course by Minister Silvina Batakis”, indicated Ecolatina in a report.

“The resignation of Martín Guzmán as head of the Ministry of Economy exposed the weaknesses of the Executive Power. The underlying problem was not his resignation, but what he left bare, the total absence of an economic plan that can solve the underlying problems of the Argentine economy”, said the foundation freedom and progress.

So far in July, the price of the free dollar rose 63 pesos or 26.5%

“While Argentina’s new economy minister has made some encouraging announcements about sticking to the current IMF agreement, it is still it is not recognized that the real exchange rate must be weakened to restore stability macroeconomics,” he estimated. capital economy.

The session in the foreign exchange market once again registered a low volume in the cash segment (spot), where USD 178.3 million were traded. The energy imports absorbed more than half of the amount operatedwhich forced the Central Bank to make important sales and contribute two thirds of the offer. “Today the BCRA assisted with USD 120 million to the market, where energy demand exceeded 100 million”, explained a market source.

Merval record and low country risk

Argentine stocks extended their rises this Tuesday, supported by the advance of local papers listed in dollars on Wall Street, in the face of a better external investment climate. To the trend were added, almost exceptionally in this 2022, the penalized bonds in dollars.

The stock index S&P Merval of the Buenos Aires Stock Exchange grew 1.7% at the close, in 107,185 pointsa nominal record in pesos, after gaining 1.2% on Monday and losing 1.5% during the past week.

While the indices of Wall Street progressed between 2.4% and 3.1% In the session, Argentine stocks and ADRs traded in dollars in New York showed most increases, led by Ternium (+5.7%), Cresud (+5.3%) and Mercado Libre (+4.7%).

Regarding fixed income, bonds in dollars rebounded 2% on average, from their minimum prices since their release on the market. Some bonds in dollars issued with the 2020 debt swap were traded below USD 18 in the morning, as in the case of the Bonares 2030 and 2035 (AL30 and AL35) with Argentine law, and the Global 35 (GD35) with New York law.

In that sense, the risk country Argentina was located at 5:20 p.m. in the 2,779 integershaving broken through the 2,800-point ceiling on Monday for the first time since May 2020.

KEEP READING:

The free dollar reached 302 pesos, its historical maximum
Markets: Stocks Rise Again, Debt Bonds Rebound from Low Prices
Three exchange jumps: at what moments in Argentina the free dollar broke the barriers of 100, 200 and 300 pesos
The BCRA had to sell another USD 120 million and accumulates a negative balance of almost USD 900 million in July
European stock markets posted strong gains and Wall Street had its best day in three weeks

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