Tuesday , July 16 2019
Home / argentina / The dollar continues to decline despite the intervention of the central bank

The dollar continues to decline despite the intervention of the central bank



The central bank also bought another $ 20 million from the market and confirmed the new unprecedented fall in interest rates by Leliq. Despite this, the wholesale dollar fell again, this time around 11 cents, and remains below the minimum price of the flotation group.

After the 55 cents jump that they made on Tuesday in the wholesale segment, while the Central Bank went without renewing a significant part of Leliq and managed to put the interest rate below 56%, this time the US currency began trading at the levels closest to the no-intervention zone, and even reached the upper limit of $ 37.80. But soon the price began to fall, and in order to avoid the greater appraisal of the pair, the monetary authority led by Guido Sandleris re-bought the market through a public auction. BCRA then gained another $ 20 million, so in January and 510 million US dollars it collected its international reserves. To carry out these operations, calculated by economist consulting company Ledesma Gabriel Caamaño, the agency had to issue about 19,000 million pcs.

The Central Bank also tried to give more air to the dollar via the Leliq daily offer. The position resulted at a lower average interest rate than the previous day. While on Tuesday it was 55.64%, it was 54.88% on Wednesday. A fall in yields could restore demand for currency.

The retail trade is almost unchanged compared to the previous day. The average of the citations made by BCRA on Wednesday was $ 38.58 for sale at banks.

With the fulfillment of monetary targets and the growth of the dollar as expected due to inflows from abroad, BCRA has expanded its offer of pesos, leaving almost $ 75,000 million in Leliqu unchanged until now this week. Thus, it managed to lower the reference rate by almost one and a half percent. On the other hand: a larger amount of available parts, for example, on Tuesday, increased the price of that currency.


Source link