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Are they going down the dollar after the success of the swap?


A stage opens after 99% acceptance in the debt renegotiation. And now a key is to reduce the exchange gap

Daniel Fernandez Canedo

09/01/2020 - 19:14

  • Clarí

  • Economy

The Government managed to


the maturity horizon with private creditors

for four years


Achieved 99% adherence to

debt swap

and took a step on the road to economic stability.

Will it succeed?

This path is long and difficult for an Argentina that carries decades of failures on its shoulders, but the high acceptance of the exchange opens a stage.

For the experts, now comes the process of settlement of the new bonds, which will take about 15 days until it is known at what effective level they are in the market.

By show of hands, market connoisseurs risk that the new titles that

start at US $ 54.90

for each sheet of 100 could after the settlement period remain at

US $ 49?, 

Which would mark that the external interest rate for Argentina

would be around 11%.

This lightly calculated calculation arose from the fact that the new Ecuador securities that began to trade after the exchange of their debt, came on the market paying between 9.50 and 9.80% per year.


In Argentina, an 11% annual start-up

would be acceptable

, but that income would also be subject to the decision to sell by bondholders who entered the exchange but who do not want to continue with Argentine debt in their hands.

On the Government sidewalk, the celebrations for the exchange are capitalized by Minister Martín Guzmán who, in addition, won in the intern the position of having started from the hand of

Alberto Fernández

but now, and because of that success has many parents, and failure is an orphan, added the support of Cristina Kirchner.

Alberto Fernández with Cristina Kirchner, who returned to the Casa Rosada to announce the high adherence to the debt swap.

Photo Marcelo Carroll

The financial market reads that Guzmán's strength is also that of the permanence of the US $ 200 quota of

"savings dollar"

that savers have the opportunity to buy monthly.

The minister believes that the elimination of this quota (there the dollar costs $ 102.12)

would trigger the "blue", parallel or free,

which in the last 30 days measured between points remained around $ 135.

Inside and outside the Government there are voices that promote the elimination of the "savings dollar" from accounts that are easy to understand: there are more than

four million people

who have CUIT and a bank account that are able to pay 25% cheaper a dollar a month .

More than $ 4 million for $ 200 gives the Central Bank a predictable but worrying path of currency sales: about

$ 1 billion a month

represents a trickle that is difficult to sustain unless there is robust capital inflow.

The other exchange battle is in the

dollar "counted with liquidation"

in which the private ones buy and sell each other but in which, also after the exchange, the Central could intervene by selling the new titles.

Close to Miguel Pesce they assure that it could intervene if the CCL (bonds are bought with pesos and sold against dollars) maintains its tendency to capital outflow.

The possibility of Pesce selling the new bonds it has in its portfolio to lower the exchange rate gap could bring relief in the short term.

But the risk, as the economist

Rodolfo Santángelo

pointed out

, is that the Central will go back into debt with the use of the new bonds as before with the Leliq (liquidity bills).

For officials, lowering the gap between dollars (it is at 74%) is essential in the attempt to clear expectations that the government will eventually devalue.

For the deputy chief of staff, Cecilia Todesca, exchange controls "are inevitable."

Photo Clarín Archive

The Deputy Chief of Cabinet, 

Cecilia Todesca

, said on FM La Patriada that "exchange controls in this situation

are inevitable",

underpinning Pesce's position regarding continuing with the daily updates of the official dollar (in August it rose 2.7% helping, in turn, to an estimated inflation of 2.5%) and trying to disarm the idea that the Government could resort to a devaluation to boost exports.

During the week the Government once again lit a candle to the

rise of soybeans

in the world market from the weakness of the dollar.

In the Central they are betting on a soybean of

US $ 360 per ton

as a way to compensate for the loss expected for corn and wheat exports as a result of the impact of the drought on the pampas.

Keeping the official dollar in line with inflation and taking oxygen from the "cash with liquid" is part of

the short-term tactic

in the attempt to improve somewhat the liquidation of exports that has been slowing down for some time.

According to INDEC statistics, the surplus between exports and imports is around US $ 1,500 million per month, but the balance of foreign exchange of the Central Bank

reaches almost half

and with US $ 750 million the demand generated by the "savings dollar" cannot be met. .

For the Government, and for a large part of the economists who follow the issue, the official exchange rate is not backward even though exports to Brazil have been falling for months due to an exchange rate lag, so lowering the "other dollars" will result fundamental to

erase the idea of ​​the need to devalue the peso


The debt swap was successful but the pressures around the dollar require more certainty to counteract, among other things, the wave of uncertainty that official policy generates in the business climate in Argentina.

Source: clarin

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