Sunday, October 2, 2022

Dollar Today: Central Bank moves again on imports while Massa seeks to unlock agricultural supplies

The official exchange market closed today with a very poor level of activity: The trading session for SioSpell in the cash segment closed for only US$162.6 million and US$1,076 million in the week. Lowest volume in four months

These figures mean that each wheel has an average turnover of US$215.4 million per day, Corresponding to USD 206 million traded in the previous week from April 4 to April 8, But a far cry from last week’s $378 million. This suggests a shortfall in supply that can be considered far-sighted, given that the government was the one who slipped that some further incentives may be evaluated to encourage it.

The adjustment in activity level is because There was not enough supply to validate current demand levels, Now that the Central Bank (BCRA) was once again forced to “step up” on payments for some imports, because of its reserve position in such a fragile state that it cannot continue to weaken.

“We were asked to slow down some operations. This is not the first time they have done so, but this time they were more vigorous”, he admitted in reserve at an entity with strong foreign trade operations, before a question. Country.

“I think anyone who follows the market can guess what is happening by the volume traded. There is no way to continue paying for energy imports if the window is not closed to others” , another veteran exchange operator agreed to describe.

With this premise planted by disturbing reality, BCRA closed the day with a purchase of only US$1 million.Which means “the third round in which it is not required to participate in the market, despite the fact that there was a demand for payment for energy imports of the order of US$50 million”, he highlighted from the monetary unit.

In that period, Central repurchased some US$19 million, according to reports, That figure did not prevent him from closing the week with a new “red” for his intervention in the order market of US$130 million, nor did it keep him from accumulating a loss of around US$820 so far this month. prevents doing. million and over $2.1 billion since the beginning of July.

All this was the timing by which Economy Minister Sergio Massa finally specified this afternoon Announced meeting with references to the contact table, Looking for an agreement that allows to unlock the supply of foreign exchange in the region.

“Since MULC only handled US$63 million, BCRA prioritized finishing without losing reserves. let us assume supply while waiting for more concrete stimuli”, Reviewed by Andres Reschini of F2 Financial Solutions.

The decrease was also what prompted BCRA to validate the biggest daily correction for the wholesale exchange rate in nearly 19 months (this allowed it to rise by $0.32 or 0.22%). and the highest for one week (of $1.70 in that period), “since ending October 25, 2019”Eminent operator and analyst Gustavo Quintana.

“The reference dollar A3500 today adjusted to the highest daily rate since at least January 2021,” agreed Rescini.

The stock position leaves the market in suspense, which considers the strong hike in rates defined by the BCRA over the past fortnight to be inadequate, if it fails to show that it recovers some reserves. “This parallel may serve to bring some peace to the dollar, but it does not dampen expectations of devaluation”, Economist and consultant Fernando Marul understands.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -