Fleeing dollar: hoarding skyrocketed

The result of banknotes was explained by the net purchases of “Individuals” for US$157 million (they bought banknotes for US$166 million and made sales for US$8 million), partially offset by net sales of legal entities and others by $26 million. While the result of the net transfers received from own accounts abroad is mainly explained by the transfers received by “Real Sector excluding Oilseeds and Cereals”, “Human Persons” and “Institutional Investors and others” for US$47 million, or $s13 million and $9 million, respectively.

In this way, the balance of the first half of the year shows a level of FAE or hoarding of US$437 million, when a year ago the result had been positive in US$200 million, that is, instead of leaving, capital was repatriated.

The “flight” of the first part of the year is linked to the net purchase of tickets for US$699 million, which was partially offset by the inflow of foreign investments by residents for US$262 million. In 2021, due to the net purchase of tickets, US$184 million left in the same period, but US$384 million net of investments abroad were repatriated. It should be remembered that all this occurs in a context of a strong exchange rate trap and growing exchange restrictions.

But the “Human Persons” not only bought tickets to hoard but also to spend with cards for consumption with non-resident providers for a net of US$375 million, which brings the total net purchase to US$577 million. Between the bonus effect, more trips and more purchases, and the rate of devaluation, it is explained that hoarding via banknotes has increased by 17% per month and external purchases by 21%. In turn, they made transfers of funds from their own accounts abroad for US$13 million against credits in local accounts in foreign currency, the so-called “exchanges”; while “Institutional Investors and others” registered net purchases of tickets for US$72 million.

In relation to the financial system, the operations of the foreign exchange financial account resulted in a surplus of US$179 million as a result of the decrease in the liquid foreign assets of the entities that make up the General Exchange Position (PGC). The entities ended the month with a PGC stock of US$5,415 million. Said decrease (US$185 million), explains the BCRA, was due to the fall in the stock of foreign currency by US$696 million and an increase in the stock of banknotes by US$511 million.

Holdings of foreign currency bills totaled US$3,508 million at the end of the month, a stock that represented 65% of the total PGC and which is kept by the entities to attend to the movements of local deposits in foreign currency and the exchange market needs. For their part, the group of entities closed June with a long term position in foreign currency for US$420 million, reversing their short position by US$841 million compared to the close of the previous month.

During June, the entities bought US$985 million in institutionalized markets and sold US$144 million directly to clients (Forwards). Foreign capital entities purchased US$272 million in net form, closing the month with a net purchased position of US$34 million. For their part, national entities bought US$569 million and ended the month with a net purchased position of US$386 million.

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