Reserves of the Central Bank: in the first week of the month it lost almost US$700 million in interventions on the market

The Central Bank (BCRA) closed the first week of August by selling almost US$700 million of its starving own reserves to keep the rate of devaluation of the peso under control, currency that keeps losing competitiveness.

The entity today closed its interventions on the market with a negative balance again of around US$95 million, in a day in which US$470.8 million were traded for the cash segment, the highest volume of the week.

In this way, although it was the lowest sale of the week, not only did it raise the consolidated loss in this way for the week slightly above US$680 million, it amounts even 5% higher than the US$653 million wasted in the first week. of Julyalthough in that period supposedly more exit taps were closed.

Consequently, in addition, its holding of the entity’s own net reserves sank to the area of ​​US$1.1 billion, an amount that does not even cover a week of imports. “It is the worst monthly streak of net currency sales for the BCRA since September 2020. The difference is that, in that month, the stock of net reserves was more than four times the current one,” puts the economist Nery Persichini, in context. of GMA Capital

The bleeding occurred despite the fact that yesterday, complying with part of the announcements made on Wednesday, the BCRA ordered two measures: one to promote the entry of funds from abroad to pre-finance exports and another to enable access to accounts pegged dollar (so far supposedly allowed only to soybean producers) to all exporters who anticipate liquidations more than 30 days with respect to the mandatory term.

Downhill on reservations.

“In this way, the Government will try to increase foreign exchange earnings through pre-financing of exports, while waiting for producers to market the grains. However, the income that implies the issuance of bills will not increase the net reserves since a short-term liability will be issued in return. It will be necessary to monitor whether these measures have any effect on the supply of foreign currency and they allow at least to moderate the outflow of reserves”, Delphos Investment warned in this regard in a report.

The balance of interventions, the worst for a week at the beginning of the month in almost two years, occurred although it validated an increase of 25 cents for the wholesale selling dollar on the day (it closed at $132.89 per unit) and $1.62 in relation to last friday“against the $1.53 increase that had been allowed last week,” noted operator and analyst Gustavo Quintana.

The data confirms that market dynamics are unsustainable, although the operators today noticed a rebound in the private offer as it will be commissioned to demonstrate even already gross bookings of the entity -plagued by loans- that fell yesterday by another US$486 million (they closed at US$37,332 million, according to provisional data), to remain at the lowest level since the signing of the agreement with the IMF.

In this case, the setback reached almost US$5.5 billion in the last 35 days, a figure that represents a sixth of the loan granted by the IMF to Argentina or that reveals that the last quarterly disbursement of the organism, made at the end of June, was enough for only one month.

“The negative dynamic on net bookings accentuates the concerns of operators, and thus the urgency regarding the measures to recover foreign exchange through export advances and access to fresh funds from abroad that would be being evaluated to achieve a better exchange balance”, financial analyst Gustavo Ber reasonably evaluated for his part.

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