The reserves of the Central Bank are on alert for the next review of the agreement with the Fund. In this sense, the monetary entity has sold almost US$ 1,000 million from its coffers to supply the demand.
The BCRA, which had cut a streak of 18 days with sales, ending with a positive net balance of US$3 million, after the agreement signed between the Minister of Economy, Sergio Massa, and the Managing Director of the World Bank, Axel van Trotsenburg , with whom he offered savings of more than US$400 million in the execution of credit projects in the country, returned to negative after his interventions in the official exchange market.
In a day in which only US$ 233 million cash was operated. The monetary authority ended the round with net sales of around US$28 million, with which it resumed its foreign currency selling streak to supply the demand in that market and the accumulated balance for the month grew by US$940 million.
In November, the BCRA’s international reserves decreased by USD 667 million, ending the month at a level of USD 38,009 million. This decrease was explained by the Central Bank’s sales in the foreign exchange market and net payments through the Local Currency Payment System, net outflows for payments to the International Monetary Fund and other international organizations for USD 441 million (payments to the IMF were for an equivalent of USD 563 million, 442 million SDRs, in interest and commissions) and a reduction in the holdings of the entities for some USD 300 million, movements that were partially offset by the increase in the price in dollars of the assets that make up the reserves for USD 836 million.
On the stock market side, the share of Argentine bonds in dollars suffered declines of more than 5%, while the shares of national companies listed on Wall Street fell by 7%. The poor performance of assets is a consequence of global risk aversion, after the rise in US rates in the face of more lasting inflation expectations. The Buenos Aires stock market, the Merval, fell 3.7%. On the side of the informal exchange rate, it rose two pesos and was offered at $379, after six days without increases. The gap with the official exchange rate was 94% while in January the informal dollar advanced $35 (+10.1%).
In the Buenos Aires Stock Exchange, the dollar Cash with Liquidation (CCL) – rises 34 cents and stands at $368.80, while in the parallel market the blue remains at $377. Meanwhile, the gap with the wholesale exchange rate stands at 88.7% and remains at its minimum level since January 11. The MEP dollar began an advance of 44 cents (+0.1%) and traded at 356.89.
Treasure kept half of the silver that they offered him
The National Treasury expressed little more than half of the money offered to it, in a new debt tender with titles tied to inflation or the exchange rate.
$283 billion were due and the market offered $600 billion, but only $332.4 billion was awarded.
Thus, a positive net financing of $389,954 million will be improved so far this year, which implies a reinvestment rate of 138%, hardly the Palacio de Hacienda. The Finance Secretary, Eduardo Setti, thanked the “strong support of the market in this new tender for public sector financing.”
The menu of instruments offered consisted of 5 titles:
A LELITE maturing on March 27, 2023 was issued exclusively for Mutual Investment Funds.
In addition, two discount bills (S31Y3 and S30J3) maturing on May 31 and June 30, 2023, respectively, and one CER-adjustable bill (X16J3) maturing on June 16, 2023 were reopened. These instruments are part of the Market Makers program.
Lastly, a US dollar-linked bond (T2V3) maturing on July 31, 2023 was reopened. In this tender, the Treasury faced maturities of $283,457 million, thus obtaining monthly net financing that exceeded $170,000 million .
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