10/28/2020 6:39 PM
Updated 10/28/2020 6:39 PM
It was hinted after the debt swap, when the Central Bank and the ANSeS received bonds in dollars.
President Alberto Fernández himself anticipated it in these days.
The Government is determined to intervene in the market to lower the exchange gap that separates the value of the official dollar from the "cash with liquid", which
last week was close to 130% and yesterday reduced it to 95%
The intervention materialized this Tuesday with official sales of bonds in dollars but against pesos.
This depressed the value of these bonds and consequently narrowed the gap.
It happened 48 hours after the opinion of Vice President Cristina Fernández de Kirchner on the
bimonetary economy was known, an
issue that was identified as the great problem that afflicts Argentina.
These operations are not free.
The government is selling dollar bonds (its famous "firepower") to private hands.
Consequently, public debt with private creditors increases and intra-state debt is reduced.
It is not the same to owe, for example, 100 dollars to the ANSeS or the Central Bank, than to an investment fund.
Public bodies can be bicycled without asking for permission.
With private companies you have to sit down and negotiate.
But not only that.
By selling these bonds, the Government is
taking on debt at 17 or 18% per year,
which is what the depreciated Argentine debt papers yield on the secondary market.
They are the same papers that yielded 11% on the day the exchange was closed.
The question is what will end up being the fiscal cost of this official intervention, and its effectiveness.
At the time, it was estimated that the Central Bank would have papers
10 billion dollars.
The other resource that Economía is using to attract pesos is the sale of dollar link bonds.
In any case, it is a debt that cannot be liquefied, because it is tied to the value of the official dollar.
It is another indexed debt.
Even the market knows that this firepower, without a consistent plan, loses effectiveness.