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Argentine exchange market with less pressure due to increase in export liquidation



A man shows Argentine pesos in front of a bank in the financial district of Buenos Aires


© Reuters / Marcos Brindicci
A man shows Argentine pesos in front of a bank in the financial district of Buenos Aires

BUENOS AIRES, Dec 28 (Reuters) – Argentina’s foreign exchange market operated more relaxed on Tuesday due to a greater flow of foreign currency from the export sector and due to the entry of some capital from investors who preferred to repatriate dollars to improve their tax profile, traders commented .

This market impasse towards the end of the year does not ignore short-term economic doubts such as the slow negotiations with the International Monetary Fund (IMF), high inflation, a strong issuance and central bank reserves (BCRA) at levels. dangerous.

“The noticeable improvement in the income of the agro-export sector collaborates with the official strategy to meet the demand for foreign currency in the foreign exchange market,” said Gustavo Quintana, operator of PR Corredores de Cambio.

* The peso in the interbank segment ended with a fall of 0.07%, to 102.61 / 102.62 per dollar, with the intervention of the BCRA to regulate the prevailing liquidity.

* Traders estimated that the monetary authority ended the day with market purchases for about $ 5 million, thus accumulating eleven consecutive sessions without currency losses.

* “Financial dollars take a breather after the last upward readjustment, still with a ‘gap’ close to 100% awaiting key definitions, since operators recognize that the dynamics of net reserves is not sustainable,” he said. Gustavo Ber, economist at Estudio Ber.

* The peso in the alternative market known as ‘Cash with Settlement’ “CCL” traded at 203.8 units, while the “MEP dollar” traded at 193.3 and in the reduced marginal exchange circuit it traded at 206 per dollar , near the record floor of 207 registered on November 11.

* “After having exceeded 220 pesos at the beginning of the month, the favorable seasonality generated by the effect of ‘personal property’ -with investors repatriating assets from abroad to avoid the differential rate-, added to the increase in transactional demand for pesos -characteristic of the month -, they push down the ‘CCL’ “, said the Cohen brokerage.

* Sovereign bonds in the OTC segment posted an increase of 1.2% on average, again led by issues in dollars, after gaining 1.4% the day before.

* For its part, the country risk carried out by the JP.Morgan bank fell by 24 units, to 1,718 basis points towards the close of the local market (2000 GMT), against its slightly higher record of 1,900 points registered at the end of the last month.

* The stock market benchmark S&P Merval fell 2.12%, to a provisional close of 82,783.68 units, in an unstable market and with intraday profit taking. This index accumulates a rise of 61.6% so far in 2021.

* The Argentine markets will have their annual closing on Thursday, since next Friday financial inactivity was arranged for being the New Year’s Eve.

(Reporting by Walter Bianchi; Edited by Jorge Otaola)

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