What are the indications to the market regarding the government’s next economic steps?

In turn, the Fundación Mediterránea stated that “the objective of the official policy Solves the problem of shortage of reserves through foreign credit and export advanceson which there are still no further details or results,” the Mediterranean Foundation said.

And he clarified that “they are trying to avoid a sudden devaluation of the peso, but have not been able to control expectations, which are going in the opposite direction. It is a very difficult economic policy scenario, without political support. within the framework of which it is necessary to follow the evolution in the foreseeable future”.

For its part, a report by JPMorgan Bank indicates that “in the future, A bold fiscal consolidation effort coupled with a reduction in the exchange rate differential appears to be necessary conditions for rebuilding the “stock” of net reserves. JPMorgan Bank said in a report, and achieving permanent deflation.

inflation

This week we learned that Inflation rose to 7.4% in July compared to June and reached its highest level since 2002 when it reached 10.4%. Meanwhile, it’s up 71% in the past 12 months, the highest in three decades., as the National Institute of Statistics and Census (INDEC) reported on Thursday. Also, Cumulative inflation reached 46.2% in the first seven months of the year.

Reservation

The Central Bank this Friday for the third consecutive day with a modest purchase balance, with a positive balance of 1 million dollars, compared to an energy request, which amounted to 50 million dollars.Indicated sources of monetary authority.

The BCRA stepped in as a buyer for some US$3 million on Thursday and US$15 million on Wednesday, the day it ended a streak 10 days in a row with sales during which it accumulated a negative balance of approximately US$1,200 million.

costs

Trying to stop the price index accelerating, the Central Bank’s board of directors decided last week to raise its key rate sharply by 950 basis points. Thus, the nominal annual interest rate of Liquidity papers (Leliq) went from 60% to 69.5% in 28 days.

Also to increase the incentive to save in addition to pesos, the BCRA raised the minimum limit rates on the interest fixed deadline establishment of human persons, New floor up to 10 million pesos for 30-day deposits at 69.5% per annum (61% previously).

Treasury maturities

The Economy Ministry received $182,772 million in pesos this week through three loan securities and thus managed to cover all the pending deadlines for this monthHowever, to achieve this, he had to validate effective annual rates of around 100%.

It is the first peso debt auction by the Finance Ministry since Tuesday’s swap, for which payments of $2.1 billion over the next 90 days were deferred until 2023.

In the tender, 1,225 bids were received representing $307,011 million in face value, of which an effective value of $182,772 million was awarded.

Of the total funding received, 68% was represented by fixed rate instruments and the remaining 32% came from CER (inflation) adjusted instruments maturing in 2023.

“Due to the success of the tender, tomorrow the second round will not take place under the Market Makers program, after the securities offered have reached the amount established according to the maturity profile”, underlined the portfolio led by Sergio Massa. of a statement.

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