The Central Bank intervened again and the dollar closed at $ 57 in the Nation

09/03/2019 – The Central Bank intervened again in the foreign exchange market although it changed its method. The entity dumped dollars directly, without auctions, and managed to keep the price of the wholesale currency stable at $ 55.98, a few cents below the previous day. In Banco Nación, meanwhile, the value for retailers was $ 57.

On the second day of the exchange controls, the Government closely monitored the movements in the market. On Monday, when they debuted, the city of Buenos Aires operated very reduced by the holiday in the United States. This Tuesday the operations were closer to normal amounts, as there were transactions for about 426 million dollars.

In the wholesale segment, the US currency maintained an almost complete stability along the exchange wheel. According to market sources, the BCRA ordered direct sales of dollars instead of the auctions it held until last week.

The central difference between the two methods has to do with the fact that, through specific sales, the entity that leads Guido Sandleris can supply precise demand needs and avoid the public auction process. So, then, you have a greater margin to set prices at the levels you consider.

Another peculiarity is that the BCRA does not publicly report what the intervention amounts were or at what value. "The reappearance of the Central Bank with direct sales in the cash segment, plus the help of other official banks, anesthetized the evolution of the wholesale dollar on the first full day with controls in the exchange market," summarized the head of the exchange company PR, Gustavo Quintana.

For retail investors, the price was lower this Tuesday compared to the previous day. The National Bank started the day with an exchange rate offered at $ 57, exactly the same value as last Monday. The average of the financial system prepared by the Central showed a price of $ 58.48, seven cents above the previous close.

Parallel quotes also fell. According to the website of the Rava stock agency, the currency "counted with liqui" closed at $ 57.70 and the MEP or "stock exchange" at $ 55.20. These are two variants by which it is possible to make US currency through stock trading or bond trading.

Regarding the Leliq, the monetary authority once again validated an increase in the interest rate of those financial instruments that it negotiates with the banks. After the two daily auctions, the yield was 85.73%. In August, for the first time since signing the program with the IMF, the Central Bank failed to meet the goal of monetary aggregates, that is, it could not end the month with a monetary base amount – pesos in circulation in the economy – agreed. The daily negotiation of Leliq is the way in which the BCRA controls that variable.

In that regard, Sandleris explained Monday at a press conference that he began negotiations with the international financial organization to determine new monetary-based objectives. The president of the central authority also said that "the financial system is solid" and that the number of reserves "is high."