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Debugged stocks stocks: Central Bank tightens controls on the purchase of dollars

2020-05-04T02:11:27.515Z


Starting this Monday there will be more restrictions to access cash with liqui. The government seeks to take care of the currencies in the key week of the debt restructuring.


05/03/2020 - 21:55

  • Clarín.com
  • Economy
  • Economy

This Monday starts a new phase of the exchange stock . A recent regulation by the Central Bank comes into effect that further restricts access to the official dollar - the one sold through the Single Exchange Free Market (MULC) - and which at the same time places greater restrictions on operations with dollars Alternatives , such as the dollar exchange and the spot with liqui.

Last Thursday, the Central Bank circular A 7001 was published. There, greater controls are established to access the already limited official exchange market.

As of this Monday, if a person or company made purchases in the retail market at the official price ($ 69.16 plus the 30% tax) up to the maximum quota of US $ 200 per month - they will not be able to carry out operations of dollar Exchange or Counted with Liqui for the next 30 days .

The dollar exchange allows to make dollars in the local market by buying securities that are quoted in that currency. Cash counting is the alternative to take foreign currency out of the country using Argentine securities that operate abroad. On Thursday they closed at $ 112 and $ 114, respectively. With these roads practically closed, the option that remains is to go to blue ($ 118), an illegal operation.

The Central also established that those who have taken the subsidized credits in the midst of the quarantine will not be able to access cash or the dollar exchange.

Another of the measures that the monetary authority took at the end of last week and that will begin to impact from today is that it canceled the permission for stockbrokers to participate in the business of buying and selling currencies in the official market. On many occasions these companies offered more attractive prices as a hook to attract customers and then sell other services to them. With this provision of the Central that leaves them out of the game,  the offer in the exchange market is further limited .

The Central's measures come at a time when, despite the increase in the exchange gap, the demand for foreign currency is overheating. With the fixed-term interest rate at 26%, half the inflation forecast for this year, the incentive to get rid of pesos and go to the dollar even at a high price, remains strong. 

It is no coincidence that the biggest restrictions coincide with a key week for debt restructuring. This Friday the term that the government gave creditors to accept the offer expires, which includes a 62% discount. So far, the committees representing the bondholders have spoken out against this proposal. Strictly speaking, if there is no agreement for this Friday, the government still has two more weeks to negotiate. Only if there is no deal by May 22 will the country officially go into default. On that date the grace period expires to meet the expiration of US $ 503 million that Argentina kicked for 30 days with the expectation of reaching an agreement with creditors during that period.

Faced with a complex scenario regarding debt, the government seeks to sit on the currencies. Bad news about the restructuring could increase demand for dollars. The widening currency gap takes away the incentive for exporters to go out into the world. That is why the fear in the official dispatches is that the liquidations for the harvest, which should be at this point of the year at their highest point, will continue to falter and even less dollars will come in than expected. 

AQ

Source: clarin

All business articles on 2020-05-04

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