Sunday , August 14 2022

The market has once again experienced Sandleris's ability to include the dollar


Only the concern about the control of the financial aggregates is what is being breathed in the Reconquista 266 building, the central bank headquarters of the Argentine Republic, where the highest authorities set a goal to set the foundations for reducing inflation, beyond inert factors and price increases associated with seasonal phenomena and administration of regulated services, such as public and private service fees.

Therefore, in the face of a swap in the exchange rate like the one suggested in the morning yesterday, which reached a peak of 3%, the answer was a handbook: suppressing excessive pressure in the market through Leliq's tender, with the announcement of the offer of up to $ 212,300 million although the maturity amounted to $ 198,300 million, in order to absorb just over $ 10,000 million released the previous day.

To achieve that goal The financial authority validated the highest rate required of average banks up to 500 basic points, the maximum amount was charged to almost 50% per annum to 7 days; although the average received was 46.01% per annum, 152 pb more than last Tuesday.

And in addition, there are assured operators, intervene in the exchange with operations to sell a dollar in the future, given the broad edge given to have completed the minimum zero balance.

If, on the other hand, they point out in the middle "entity monitors and monitors daily by an entity to meet the objective of zero emissions until June, more disposals of seasonal nature or resulting from the purchase of dollars under the uninterrupted band ", and delete instability of market movements, but respect the criteria that correspond to the exchange rate and the increase of floor and ceiling values ​​at a rate of 2% per month to March.

Properties with previous peaks since October 1, 2018

As the current president of the Central Bank and his team has announced a zero emission commitment on September 26, 2018, 5 episodes of jumping from the degrading rate of the order were 3% to 4%, but it was only once extended by more than one wheel. And they always had a prompt trigger, although they did not have the ability to repeat running, like those observed between the end of April and mid September 2018.

The first was on October 4, 2018, shortly after assuming Guido Sandleris and installing the instruments to achieve the zero emission objective. Jump to the public exchange rate of 2.1% and 2.4% in the channel where companies connected with foreign trade and financial entities operate, due to the acceleration of the inflation rate to more 6% in September; the natural uncertainty about the effectiveness of such a significant change in the financial policy, and the delay in the second distribution of the expanded agreement with the Monetary Fund. There was no forex climbing, it went down for 7 consecutive wheels, after raising the market rate of interest rate to more than 70% annually, despite the fact that the Central Bank is released to the market in 3 days more than 40,000 million pesos.

The second on November 23 and 26, 2018, when strong data from sudden decline in economic activity arose suspicions about Government ability to meet the goal of reducing the deficit, the contractual effect that & It was available on tax collection, despite the urgent assumptions on exports; and impairment due to delays of this type of real exchange rate, when combining the low nomination with months of high inflation and a lesser type of effective change for the agro and & Industry. The increase in the price of the money was not maintained, it was 4 consecutive wheels.

The third was on December 26, 2018, in line with the regulation of the Financial Income Tax, as it forced to undo jobs in bonds and expect to redesign portfolios. However, the fears and suspicions about its real effects disagreed, a after a jump of 3.8% in the public price and by 1.8% on the closure in the wholesale segment, 5 consecutive days were recorded with quotes low.

The fourth was on January 7, 2019, the equality closed with an increase of 2.7%, in line with the regulation of the entity information regime, and the publication of predicted automotive terminals due to the recession of the domestic market. Plants are waiting for holiday to technical staff. This was the only case where they followed a little relevant.

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