For the first time since Javier Miley took office, the Central Bank sold dollars on the market for two days in a row

The Central Bank completed its participation in the stock exchange this Monday $9 million in market sales. This was the second round of sales in a row after recording a negative balance of $27 million on Friday last week.

This trend is exceptional in 2024, since since then Javier Miley took office as president of the nation – with Santiago Bausili in the leadership of the monetary authority – there were not two consecutive sessions with official sales on the wholesale market. Business was again modest on Monday, with approximately $245.2 million in cash sales.

The last time the Central Bank had a negative series of foreign exchange interventions was at the end of its reign Miguel Pesce as president of the organization – with Sergio Massa as Minister of Economy – when he led six consecutive rounds of sales between November 30 and December 7, 2023, totaling $903 million.

During June BCRA purchase balance is about 90 million. dollars. Since December 11 last year, when the government of Javier Milei came to power, the Central Bank has accumulated net purchases on the foreign exchange market of $17.376 million.

On the other side, Booking This Monday’s international gross fell by approximately US$61 million. US$29,236 million. Thanks to the management of La Libertad Avanza, the said shares increased by US$8,027 million, or 37.8%, from US$21,209 million as of December 7, 2023.

“One news that caused a stir this week was the suggestion that change with the People’s Bank of China will not be renewed, which will entail the withdrawal of approximately US$5 billion from BCRA coffers. Concerns about these dollar outflows have intensified given the fact that the Treasury is due to pay capital and interest to Globales and Bonares in July, which increases the outflow of foreign currency by $2,450 million,” bank analysts said. OIE Group (Invest in the stock market).

“In turn, the government must face repayments to the IMF and other international organizations, and these dollars will again be purchased from the BCRA, while the monetary authority itself must face the capital and interest repayment terms of Beaupreal. In total, about 15 billion US dollars could come out of the BCRA international reserves, excluding IMF payments,” the OIE group believes.

“In this context, we see that the difficulty in lifting restrictions still lies in the surplus of pesos, and not in the shortage of dollars, which are also lacking in the BCRA coffers,” they determined from Financial Services Consulting.

“The accumulation of reserves is undeniable. The figure is impressive at first glance, although it hides some details. Beginning with liquidation of the oilseed-grain complex, which was influenced by climate and logistics factors, resulting in total foreign exchange earnings in 2024 being at the level of last year and slightly below the average for the last ten years – for the first five months of each of them. Then the explanation lies in two other factors: other sectors and import payments. Looking at the BCRA’s foreign exchange balance, the “real sector excluding oilseeds and grains” moved from a deficit of -US$5,668 million in the first quarter of 2023 to a surplus of US$6,645 million, which is an important source of dollar revenue for the economy. recomposition of reserves,” he emphasized in the report ATS stock market.

“On the demand side, accrual and cash basis imports have shown a clear divergence in recent months, with regulations tending to impose staged payments on goods and services coming from overseas. Going forward, the outcome on this front is unclear given that the two forces are in opposition. On the one hand, the BCRA provided that individuals and MSMEs can cancel payments on transactions starting from thirty calendar days from the date of customs registration. However, the phase-in scheme continues to put pressure on most imports, which could continue to limit foreign exchange outflows and support BCRA’s buying position,” they added from TSA Bursátil.