BCRA sold 87 million US dollars on the market and accumulates a negative balance of 643 million US dollars in March

The Central Bank closed the wholesale conference on Wednesday with sales for $87 million to meet market needs, in session with companies for USD 328 million in the cash segment (place), which implies that the monetary entity contributed 26% of the traded volume.

The BCRA chained eight consecutive days with a negative balance due to its participation in the stock market and recorded in Net sales of $643 million in March in the MULC and during 2023 the negative balance in the MULC reaches 1,625 million dollars.

The ace Reservations Gross international markets fell $178 million on Tuesday and ended at $38,142 millionthe lowest amount since November 30 last year.

“Beyond the relief represented by the reduction in the IMF’s near-term reserve targets, traders continue to watch closely as the unabated drain on reserves amid forecasts of lower foreign exchange supply In this scenario, the financial dollars emerge from the calm phase of recent times and resume their upward readjustment given the increased demand for hedging in an equally more difficult global context, which which sparked the search for safe haven in the dollar and in US Treasury shorts whose rates are suddenly collapsing,” he described. Gustave Berowner of Estudio Ber.

Despite the relaxation of the reserve objectives of the agreement with the Monetary Fund international market and a giant debt swap the government carried out last week to ease short-term maturities, investor doubts have not been allayed amid rising inflation, high budget deficit and scarcity international reserves, in the midst of a complex year in which presidential elections will take place.

“The easing of IMF agreement targets has generated uncertainty among investors as there are doubts about the government’s ability to balance public accounts and improve reserves in an election year and in the midst of an election year. ‘a severe drought,’ officials said. pointed out the analysts of Search for merchants.

“According to the latest projections, the drought would have a direct impact of 3% of GDP, costing around 19 billion dollars. This will lead to fewer exports and more inventories, which will have another negative effect on the level of activity and inflation,” the economist recalled. Roberto Geretto, Fundcorp analyst. “The already difficult election year is going to be even more difficult,” he said.

Experts from Ecolatine underlined that “keeping the level of interest rates in line with or above the monthly devaluation is crucial to strengthen the demand for the local currency, in order to reduce the excess demand for dollars and to ease the pressure on the official market and parallel markets: if he creeping ankle is above the interest rate, importers will have an incentive to bring forward imports and exporters to accumulate stocks.

“It is clear that the vicious cycle of fiscal deficit-monetary financing-domestic debt accumulation must be deactivated if the objective is to stabilize the economy. In the short term, macroeconomic sustainability must consider the renegotiation of the terms of all debts and the need for foreign investments to implement an order of the structure of public sector expenditure,” he said. Martin Calveiraresearch economist at the IAE Business School, Universidad Austral.

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