International Reserves fell on Tuesday to 52,149 million dollars, according to the provisional data of the Central Bank. Thus 995 million dollars fell in a single day.
It is an amount slightly higher than those observed on Tuesdays after STEP and that is due to three factors. The first is the flexibility in the composition of the PGN (the net global position in foreign currency) so that banks can have more forecasts of dollars in their branches with the intention of covering the greater demand for deposits of savers.
Also for the intervention in the Single Exchange Free Market. For the first time, Guido Sandleris decided to conduct direct operations to contain the spot dollar. And although the Central Bank did not report how much these interventions added on the screen, they assured LPO that they were amounts lower than those tendered in the previous days.
They also stressed that direct intervention and not through bidding does not imply a breach of what was agreed with the IMF, since when it was authorized to intervene within the reference area discretionally, the way to do it was also agreed to be the one that best judges the monetary authority for the occasion and not necessarily by tender.
And thirdly, the outflow of deposits. This Tuesday the long queues that were seen yesterday in the banks of the City of savers were not observed going to get their dollars for distrust in the banking system, but the demand for deposits also explained a part of the decline in the reserves.
Source: Online Policy.
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