The company that leads Guido Sandleris predicted that it will perform two daily auctions on behalf of the Ministry of Finance and orders: the first 12 and the second at 14:45, where the units will go 3 minutes to upload their offers. According to BCRA, "participants can express their interest up to two positions each, with a minimum of $ 1 million per auction, in increments of $ 1 million and without maximum". In addition, the positions will be awarded with several prizes after the end of the auction "and" a pro rata system will be used if needed, "said the agency. In the first operation yesterday, BCRA auctioned $ 30 million at an average price of $ 41.55. the other, he placed another $ 30 million, but averaged $ 41.6538,
If the government wants to cancel this strategy, it must notify the International Monetary Fund (IMF) at least 20 days in advance. And if the exchange rate falls below the "non-intervention zone", the state funds will be sold directly to the central bank and the funds will be deposited there until the fiscal needs require otherwise. It is worth remembering that Finance Minister Nicolás Dujovne announced in March that the measure is intended to cover the government's needs in Pesos. But it will also allow the ruling party to calm down in the exchange, in the midst of valos security and poor financial data, including the acceleration of inflation.
Soledad Tortarolo, from Allaria Ledesma, stressed that "it is no coincidence that the government is selling $ 1.3 billion a month", given that "in February (quiet month for dollar purchases, but also with little liquidation of Exporters of Agriculture), Foreign Trade went to $ 500 million "and that" It was the purchase of dollars from the private sector for $ 1.7 billion, "making it a difference of $ 1.2 billion. He noted that "in a quiet month, this sale should allow the exchange rate stable or slightly appreciated." He considered, however, that "the IMF models underestimate the effect of an increase in the exchange rate on prices and operations", which became clear in 2018, when they estimated an annual rate of inflation of 32% while observed it was 47.6%. "This bias is responsible for not being able to optimize dollar sales sometimes when demand accelerates," he said.
Meanwhile, they pointed out from a money table that "the real exchange rate works between a 115s floor and a ceiling of 120; you have to see those willing to do a" trade "if they are willing to validate a level near the floor." stated that "it is a mistake to underestimate the effect of a small amount for a long time, because what is sought is not to affect the exchange rate too much and at the same time have goods to cover until the end of November". And they added that "the Argentine market is psychotic: now it's silent, but a week ago everyone asked to sell before. Argentina must now follow the rules. If they warned they would follow, we must go to this page. "