Treasury regulate Argentina exchange market to market exchange

Original Joerge and Walter Bianchi

Buenos -Aires, September 4 (Reuters) -Non -nervous decision of Argentine Treasury to create the impact of liquidity liquidity on Thursday with balanced prices in the domestic peso against the dollar, with the election process in dance, which violated the financial market, given the existing uncertainty.

With the approval of the International Monetary Fund (IMF), the Libertarian Javier Moilei government announced on Tuesday that it is interfering with the purchase and sale of foreign currency on the market, so that the anchor is sometimes when the Agro -Export sector is eliminated for seasonal reasons.

This led to a quote of the interbank currency with a small minimum of 0.11% to one closing 1363 per dollar, just two days after he scored his historic floor of 1400 units and with the heavy turn of the Central Bank (BCRA) in Plaza -Duers to reassure the devaluation expectations.

“It is important that the Treasury provides for the functions that correspond to BCRA, which emphasizes the deinstitutionalization and exposes the fragility of the current scheme (government),” the Encuentro Foundation criticized.

Weight accumulates a loss of 24.2% during the year, with the country risks jumping up to 900 major points, the highest in five months.

Argentines are immersed in the long stage of legislative electoral processes in the regions this year, when they go to elections in the influential province of Buenos -Aires, the bastion of the opposition of the peronist, and the end of October will do so in the national set.

The uncertainty in the election results reduced the coverage of portfolios in dollars, which, on the other hand, in the South American country to each call in the elections.

Pablov’s finance secretary defended the interference in a television interview in which the “specific liquidity situation” for “uncertainty caused by the opposition (political)” and therefore “we must prepare for it to continue by the end of October.”

According to market operators, the Treasury regulates the wholesale price of the peso, placing the proposals in the So -Compired “Single and Free Market” (MULC), which on Wednesday entered the absorption of about $ 35 million, and on Tuesday, when entering the stage, it came off from $ 150 million.

Attention

This intervention policy – which has been able to assure the exchange scheme – does not affect BCRA stocks as they are made with financial surplus funds that announces and implements Milei.