The BCRA bought USD 55 million in the market, but maintains a strong negative balance in the month

Pedestrians pass in front of the Central Bank building.

For the second operational session the Central Bank managed to add reserves due to their foreign exchange participation, even with the presence of a high demand by energy importers, in a round with businesses in the cash segment (spot) for significant USD 407.3 million, some USD 100 million more than on Friday .

“The BCRA began with a purchase of USD 55 million in the last week of the monthin the second consecutive round, still with a very strong foreign exchange demand for energywhich exceeded one hundred million ‘long’”, confided a market source.

Gustavo Quintanaagent of PR Corredores de Cambio, stated that the “demand for the payment of energy and fuel imports remained strong, today exceeding USD 100 million, according to market sources.”

As far as Julythe monetary authority maintains a Negative net balance due to its intervention in the foreign exchange market in the order of 881 million of dollars. So far in 2022, it accumulated net purchases in the wholesale market for some USD 961 million, an amount that represents 12.8% of the net balance in favor obtained in the same period last year, which accumulated some USD 7,512 million at July 25, 2021.

The Bookings BCRA gross international transactions decreased in the last five rounds by USD 429 million and ended in 39,714 million of dollars.

“Although it is true that there is a delay in the volume of soybeans sold, corn is ahead of schedule. And since both had higher prices, the field liquidated more than ever: USD 19.1 billion at the end of June. They are in a position to export some 15 million tons of corn and 30 million soybeans, which, although they would generate USD 21.4 billion, will be sold to the extent that their owners need to pay, prioritizing the corn that is intervened, “he said. roman danteProfessor at the Center for Agribusiness and Food at the Austral University.

“As if this were not enough, there is a lack of diesel, which delays the shipment of the merchandise to the port. In addition, the high exchange rate gap makes it necessary to sell and decide to buy dollars in order to have savings in the same currency in which the supplies that must be purchased next year are quoted, leads to being careful with sales,” added Romano.

The purchase of dollars is crucial for the BCRA, with net reserves at the limit

For some analysts, an alternative to devaluation could be a splitting of the exchange rate, for example with the application of a dollar for agricultural exporters in a range 30% and 40% higher than the wholesaler, with the aim of capturing the more than USD 20,000 million that are immobilized.

“There would be no decrease in withholdings, since the Government does not want collection to be reduced. Although it could also backfire, and be pressured by the rest of the exporters to devalue the wholesaler,” he commented. Ignatius MoralesFinancial Business Analyst at Wise Capital.

KEEP READING:

Another critical week begins for the dollar: they estimate that the Central Bank’s firepower is minimal and that net reserves are negative
Companies unwind spot dollar positions with liquidation and hedge against what they fear most: inflation and a devaluation
Devaluation: why it is a bad sign that the price of the free dollar is above the “counted with liquid”
Dollar for foreign tourists: doubts and distrust in the financial sector
Daniel Artana: “If BCRA reserves were consumed, it is more or less similar to debt being issued in dollars”

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