The interest rate level was, among others, one of the most important differences maintained by the Guzmán-Pesce duo since December 2019. According to various sources over the past few months, each of the Treasury and the adjustments of rates of the Central Bank generated some dispute about what yield should validate the movement. While in the Ministry of Economy they were reluctant to recognize higher returns to the market (there was talk of “sustainable” rates or indebtedness), in the Central Bank they asked for more aggressive adjustments. Even in recent weeks, after the May inflation data, someone went so far as to say that an opportunity to give a strong signal in March had been missed and that yields had fallen behind what was necessary.
The agreement on the need to strengthen the instruments in pesos now seems closer between the new minister and the president of the BCRA. According to Batakis herself in an interview with El Destape, in addition to the meeting on Monday, she maintained fluid communication with Pesce on Monday night and also on Tuesday morning. “Yesterday I not only had the meeting with the outgoing minister but also with Miguel Pesce, where we talked a lot and the coordination will be daily,” she assured.
In addition to the general management issues, the official closely followed the Central Bank’s interventions in the market in the face of the downward reaction with the news of her appointment. In these two days, the monetary authority intervened strongly buying bonds and selling dollar futures. But he also expressed concern about the amount of second semester debt maturities.
“The second semester is very complex for the Argentine economy, there are many maturities in pesos,” said Batakis. “There is a very, very strong expiration in September, also at the end of July, and that is going to generate tensions,” he admitted. “In this we have to be realistic and honest, tensions are going to exist,” he insisted.
The calendar presses. According to a report by the consulting firm Invecq, between July and December around $3.7 trillion are due, with a withering date of $1.05 trillion in September.