2023-11-28 20:51:00
He Central Bank of the Argentine Republic (BCRA) restricted access to a linked dollar letter known as Lediv whose demand had grown exponentially since the general elections and threatened to generate a “ball” similar to the Leliq.
What are Lediv?
The monetary authority itself defines the Lediv as Internal Letters of the Central Bank of the Argentine Republic in dollars and settled in pesos by the Reference Exchange Rate at zero rate.
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In principle, they are instruments that the BCRA offered to investors to be able to hedge against possible fluctuations in the official exchange rate. Seeing a devaluation on the near horizon, agents turned to subscribing to this asset, whose stock reached USD 5.1 billion in the last days.
“They are linked dollar bills at a 0% rate issued by the BCRA, redeemable at any time at 100% of their technical value. They are 180/365 days,” explained the head of Research at Romano Group, Salvador Vitelli.
The Central Bank restricted access to Lediv
In that sense, the economic analyst explained that, until the new restrictions, some sectors could protect their weights in these papers and they had the advantage of being able to collect at any time.
As an example, Vitelli highlighted that after the post-STEP devaluation of 22%, “those who placed their pesos the previous day could later redeem their capital + 22%”, obtaining a juicy profit.
Demand has increased significantly since the partial victory of Sergio Massa in the October 22 elections and, in order to avoid an effect similar to that of the Leliq, the entity chaired by Miguel Ángel Pesce arranged a narrowing of the universe of eligible investors for the purchase of Lediv.
Through communication “A” 7892, the Central limited the subscription to the banks with linked dollar deposits, oil companies that have increased their production and importing SMEs of goods.
As detailed in the official text, dollar bills liquidated in pesos at a zero rate cannot be transferred between different holders.
At the same time, it highlights that at the request of the subscriber, they are redeemed starting on the third business day of their subscription, “and the holder may request early redemption of all or part of them before their maturity.” “The settlement will take place on the same day the sale is agreed upon,” the statement explains.
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