The Central Bank bought more than $300 million on the exchange market with a large volume of transactions

BCRA headquarters in the center of Buenos Aires. (REUTERS/Enrique Markarian)

The cash segment traded close to US$600 million (the second highest this year) to US$578.8 million. The high level that allowed the Central Bank to achieve purchases of $304 million, slightly more than half of what was proposed, at a time when the expected foreign exchange earnings from agriculture during this time are more evident.

The monetary authority accumulated a balance in favor of its foreign exchange intervention of US$2.896 million in April, its sixth month of positive results. From Monday, December 11, after the inauguration Javier Miley, monetary organization carried out net purchases 14.316 million dollars.

The monetary institution has carried out sales in only three transaction rounds since December 11th, and this Friday the 19th has been the only one with a neutral balance since then. Santiago Bausili took over as president of the Center.

“The next rounds will be critical in determining whether importers will truly be given greater access to the official market, or whether this was a one-off event. While it is not practical to draw conclusions based on specific data, we remember that approximately $87 million in provincial debt payments are due this week, which will increase private demand. Even with Friday’s specific increase, we still note limited access to the free foreign exchange market for importers, which is unclear as to whether this is a consequence of these actions. carry in pesos – delay in requesting foreign currency from BCRA – or for moving to the cash and settlement market after 90 days from their last access to MULC,” say analysts from Personal portfolio investments.

On the other side, Booking international markets ended this Monday up $60 million. US$29,906 million, the highest gross amount since June 29 last year. The difference between BCRA purchases and reserve increases was largely justified by sharp declines in international gold prices (-3%) as well as the Chinese yuan against the dollar (-0.1%).

Gross reserves under management of La Libertad Avanza increased by US$8.698 million (+41%) from US$21.208 million as of December 7.

“Beyond the occasional respite, operators are appreciating the ongoing process of steady accumulation of reserves, especially as large-scale crop liquidations are just entering the stage, besides the fact that it is estimated that importer presence may also begin to increase. Despite the debate generated by exchange rate lag dynamics, financial dollars continue to experience a period of calm, even as pressure from abroad is added due to the depreciation of emerging currencies in the face of a more challenging environment that could increase risk. in the future, it is believed. Gustavo Behreconomist Estudio Ber.

“On the private demand side, given very modest devaluation expectations, it remains sub-optimal to demand foreign exchange from the BCRA ‘now’ while there is funding from a foreign supplier. This case applies to those who prefer to continue operating in the formal market rather than turning to the financial market, about which we are no longer confident, given the low performance of private demand. In this context, we see that BCRA will have the opportunity to increase the pace of procurement in the formal market,” they noted in Portfolio Personal.

As for settlements of agricultural exports in the foreign exchange market, rains continue this week, which may lead to further delays. “Growers fear that repeated pruning due to rain, excess moisture and heat will cause damage due to sprouting and pod opening, reducing yield,” he explained. Roman DanteProfessor and Research Fellow at the Center for Agribusiness and Food, Australian University.

Delays in threshing also lead to decreased sales. Official data comes on April 10, when the rains just started. “Although dry weeks sales are similar to other years, starting with few sales plus the locations mentioned means we only have 6% in value versus 15% historically,” Romano noted. “This situation generates low prices in the foreign market, but higher export premiums due to the reluctance of the manufacturer to sell, and, in addition, higher prices than industrialists would be willing to pay in the face of rains that leave factories without goods. ” he added. .

International Monetary Fund (IMF) said on Friday that preliminary data suggested Argentina had achieved program goals by a “significant margin” and added that imbalances remained in its economy and that caution was needed in lifting exchange controls.

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