Mary Church
10/25/2020 8:26 PM
Clarín.com
Economy
Updated 10/25/2020 8:26 PM
With a blue dollar that touched $ 195 and closed at $ 189 last Friday and that seems to
find no ceiling,
the Government is advancing in its plan of trying to lower the exchange rate pressure and seek to bring down the expectation of devaluation that is spreading in the market and it carries over to decisions in the real economy.
Beyond the deadlines that Martín Guzmán has to achieve this task, the nervousness that causes the exchange rate gap to be above 130% in an economy that is going through the third year of recession and high inflation marks a winding path to travel.
The plan sought by the Minister of Economy, empowered by Alberto Fernández in a public way in recent weeks, includes trying to
reduce assistance from the Central Bank after the mega-issue
that was made to finance the measures that were put into practice to counter the pandemic .
Specifically, this Tuesday there will be a
mega-issue of debt in pesos that will include a new bond tied to the official dollar,
after the high demand received for a “dollar linked” instrument issued at the beginning of October with which the Government obtained
$ 136,000 million.
It is an
18-month
bond
that can be subscribed by any saver
who tries to back up their savings and hedge against a possible devaluation.
This option implies for the investor to enter the bond in pesos and also, at the end, to leave with pesos, but maintaining the evolution of the official dollar.
As it is a title that is 18 months long, it implies that it
will expire after the legislative elections next year.
Although it is useful to banks and insurers, which due to their activity regulations cannot dollarize their assets, it
is open to all public and, with the equivalent of $ 1, it is now possible to access the tender
, as happened in which it was done in early October.
The saver who entered the tender on October 6 did so in pesos, the amount he invested was converted into dollars at the official exchange rate.
On the total in dollars, you will receive interest in May and also in November 2021, equivalent to 0.10%, and then, at maturity, you will receive pesos again that are paid according to the official exchange rate of that moment.
An
equivalent scheme will be followed in
the auction to be held this Tuesday
.
All the bids made by the Ministry of Economy are open.
This means that any investor is qualified to enter through intermediaries such as banks and brokerage firms.
However, sometimes the entities with which it operates on a regular basis do not have the channels available to access it, so it is advisable to check beforehand.
After this tender, it is expected that
on November 2, the Economy will report the details of the auction that will hold the debt in dollars
, the first in North American currency under Alberto Fernández's administration.
This is part of the announcement on Monday of last week, of the tender that will be held on November
9 and 10, for US $ 750 million,
to provide an outlet for the securities that were “trapped” in peso securities and that they want to stop investing in Argentina and that the Government identifies as one of the causes of the pressure on the dollar counted with liquidation.
One of them is the Pimco fund.
In addition to this announcement, last week they reversed some
restrictions on the liquidated spot market (CCL)
to give it more depth and try to avoid so much volatility.
Until Thursday, the reaction was not the one sought: the CCL and the MEP dollar were on the rise, touching $ 181 and $ 163, respectively.
After this, the market operators assured that on Friday they received telephone calls in which they were "invited" not to operate on their own in these markets and these dollars ended up deflating to $ 168.83 the CCL and $ 155.17 the MEP.
Guzmán intends that next year's fiscal deficit be financed more with public debt (which also includes getting more with international organizations) and less with the Central Bank.
