El Banco Central (BCRA) consolidates a clear selling position in the foreign exchange market (MULC). This Thursday sold $80 millionto total in five business rounds in July a negative balance of 638 million dollars.
“The BCRA attended the market today with some USD 80 million, where the demand for energy imports was around USD 170 million,” a market source told Infobae. “In the week, energy payments reach USD 500 million,” he added.
the monetary authority accumulates so far in 2022 net purchases for some USD 1,204 million, an amount that represents 17.6% of the net balance in favor obtained in the same period last year, which accumulated some USD 6,828 million as of July 7, 2021 .
The experts from Portfolio Personal Inversiones indicated that this July “this is the worst start to the month since September 2018″, although “considering that what we are seeing this week is the gradual reincorporation of importers into the MULC, after the virtual ‘holidays’ of importers last week”.
Debt payments and IMF
In the next few days there will be a drop in net reserves due to the payment of interest on the Global and Bonares bonds for some 694 million dollars. “This being the case, net reserves would sink next week, Other things being equal, at USD 2,874 million. How will the BCRA face the second semester with such a low stock of reserves? More ‘stocks’ or discreet jump of the official dollar? The devaluation is a more than likely event despite the fact that the ruling party denies it”, considered the analysts of Portfolio Personal.
The minister Silvina Batakis spoke on Wednesday with members of the staff of the International Monetary Fund and then with the head of the organization, Kristalina Georgieva. Both agreed to continue “working together” to promote macroeconomic stability on the growth path.
“The future relationship of the minister with the Fund will depend largely on the success of the current Extended Facilities plan. According to Ilan Goldfajn -Head of the Western Hemisphere Department of the IMF-, Batakis has all the support of the organism to continue talking, discussing and, eventually, negotiating some monetary, financial or fiscal objective with the IMF. For now there is no alternative to changing the goals agreed upon for a maximum deficit of 2.5% of GDP, a monetary issue point and accumulated reserves of USD 4,800 million minimum”, they explained from Research for Traders.
“Eventually, if Argentina demonstrates good faith and only for issues related to changes in the world economy, they could analyze waivers punctual in some numbers or percentages, but only in the first quarter of 2023. It will not be the subject of debate and conversation during the next two IMF missions, which will take place between the last fortnight of this month and October; to control the figures for the second and third quarters of the year”, they added from Research for Traders.
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