Minister of Economy, Louis CaputoDefend the flow Exchange rate In response to those who say he is backward.
“The first case in the world of an economic program that increases export quantities to record levels with a “backward” exchange rate.” The president of Palacio de Hacienda published a graph showing the increase in sales abroad.
Luis Caputo defends the exchange rate, despite criticism of the “cheap” dollar.
In this way, the Minister sought to define his position before economists and private sector leaders who consider this “The dollar is cheap” This constitutes an obstacle to the development of the economy.
Many of these questions are based on Closing businesses or replacing them with imports One of the production lines that have been known in recent months.
The position of minister does not allow us to distinguish between the sectors that are driving this increase in exports. It also does not accept questions inquiring about the foreign sales file, as Noticias Argentinas has requested on several occasions.
however, Special reports and even the most recent publications of the National Institute for Economics and Democracy show that growth is concentrated in sectors with competitive advantages derived from natural resources such as energy (vaca muerta) or the agricultural sector.
The Treasury absorbs almost all of the liquidity in the latest auction, leaving little money in the market
Louis “Toto” Caputo It decided to absorb practically all the pesos that the banks offered it in the last treasury tender, despite the fact that the Argentines, according to the official letter, are demanding the money as soon as the crisis ends. The legislative elections dispelled the “coca danger.”
This way he made it clear that no matter what Forecasting a credit boomThe Minister of Economy does not believe that pumping pesos into the market is completely safe. Moreover, the Treasury – whose BCRA account is at its lowest levels for the year – is not in a position to take on the financial risks.
The minister shared a graph showing the rise in foreign sales and said: “The first case in the world…”
The debt maturity was huge: $14.5 billion, the Treasury Department ended up renewing 96.5% of it. In other words, Barely leaving $500 million “loose” in the market, This is a small number if we take into account that in the previous tender, a month ago, liquidity increased by $4.5 billion.
In fact, last month was not a surprise, because the financial system He called for a reversal of extremely contractionary monetary policy Which was applied at the end of the electoral campaign.
As for the end of this Wednesday, it was not strange for the analysts, knowing that they were sent in the last days Signals to banks of the need to direct their liquidity to new debt instruments.
Higher margin banks: BCRA cuts rates and adjusts reserve requirements
The central bank presented it last week Another reduction in so-called “concurrent rates” -Interest paid to banks for excess liquidity-, and in this way generated a contagion effect that led to a decline in “collateral” – which is used to obtain very short-term liquidity -. This rate, which has now reached 18%, It reached an extraordinary level of 190%. In the period preceding the legislative elections.
Moreover, he reversed his position by taking a measure that displeased banks: increasing minimum reserve requirements, while committing to do the counting daily rather than as a monthly average. Now, yesThis regulation was made more flexible, which freed up 3.5 liquidity pointsMoreover It requires only 75% of reserves on a daily basis. The result of all this is that there is more room for maneuver for banks to use their available liquidity, which in principle may lead to enhanced credit expansion.
At the same time this margin was granted to the banks, it offered Extensive ‘list’which included fixed income bonds with relatively long maturities (February to October), and bonds Adjustable by CER, New bonds linked to average Tamar prices and also “Dollar-linked” options.