Wholesale turnover improved by more than $100 million since Thursday, to $249.9 million in the cash sector, although central bank purchases were reflected in a decline. Only a marginal amount of $1 million.The monetary entity is chained. 14 Wheels in a Row with Buyer Credit In the market.
During the week ending today, the central bank made purchases worth $232 million.To strengthen the balance in his favor as a result of the exchange intervention last August by about 539 million dollars.
BCRA has been restricted for 14 days on a balance in his favor due to its interference in the exchange.
the Reservations Total International Grown by US$189 million to US$27,845 million -Maximum since August 5- due to cash purchases on Thursday ($11 million), a 0.3% rise in the yuan against the dollar (due to the effect of the currency “swap” with China, which accounts for two-thirds of the share) and a 1.2% rise in gold prices. Over the week, reserves improved by $305 million.
The central bank has accumulated net purchases in the foreign exchange market of $17,509 million since December 11 of last year, when the government of Javier Milei took office. At the same time, the stock of international reserves improved by $6,636 million, or 31.3%, compared to $21,209 million on December 7, 2023.
“In recent days, BCRA has once again become a net buyer of MULC despite our position in the period with the greatest seasonality against it. Two factors explain this dynamic: 1) the decrease in demand for foreign currency in the energy sector and 2) the delay in payment by importers due to the imminent reduction of the PAIS tax. Our view is that this performance has an expiration date: given the adjustment in the MULC access system, importers’ payments in the coming months will be up to 150% higher than the imports due. Financial Advisory Services.
“The market does not rule out that the normalization of the import plan is a problem and still recognizes the full credibility of the government, which represents an attractive valuation for dollar-pegged instruments. Our view is that the government will lift restrictions sooner rather than later, but there could be better entry points if the “buy chain” extends and the direction of the economic program is ratified amid political turmoil,” they added from Consultatio.
“It is worth noting that the BCRA has improved its performance in the formal market as lower private demand from the top levels of the Maile administration offset the marginal decline in supply from exporters. As for the latter, agricultural clearances continue to accelerate, putting an end to the slowdown in supply. Specifically, grains and oilseeds clearances remained virtually unchanged last month, rising from an average of US$119 million per day in July to US$112 million so far in August. Personal portfolio investments.
In this context, the rise in political tensions in recent rounds would have pushed the authorities to deepen interventions in search of prolonging the calm in the financial dollar, which is still experiencing a phase of very limited volatility. This is also happening within the wholesale market in the situation wait and see “We are waiting for the next reduction in the PAIS tax, through which importers can return to the scene with greater participation and thus influence the purchases made by the BCRA so far this month,” the economist explained. Gustavo Beer.
Private sector foreign currency deposits – in cash – reached $18,812 million on August 20, according to the latest data updated by the Central Bank. These deposits reached their maximum since January 27, 2020. Since the La Libertad Avanza administration took over, the said stock has increased by $4,686 million, or 33.2%, from $14,126 million on Thursday, December 7, 2023.
With the new monetary scheme announced on July 13 in effect, the central bank has now seen a net expansion of $69.29 billion since Monday, July 15. This requires the resale of currencies on the stock market at a “cash-in-liquid” rate to comply with the government’s strict “zero emissions” plan. To complement this, the government has announced the sterilization of pesos issued to buy reserves in the MLC since April 30 ($2.4 billion).
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