The economist, Alejandro Bianchianalyzed for Canal E the strong volatility that the Argentine financial market is currently experiencing, with significant increases in inventories, changes in exchange rate policies and different expectations regarding inflation, debt and reserves.
“The moment for Argentine action it still seems to be going on“said Alejandro Bianchi, pointing to the strong recent market performance, especially in the banking sector. As he explained, the government’s announcement about the new exchange rate band system was well received by investors: “The market saw in it the possibility that the Central Bank can actually accumulate reserves again“.
With the change in the belt system, the market has become quieter
Likewise, he pointed out that this change made it possible to “reduce some of that risk that the market saw in terms of the opportunity.” not having enough dollars to make payments“, regarding the obligations that the country will face in 2026. “Let us remember that in 2026 Argentina faces payments between private debts and multilateral organizations.” about $22 billion“, he remarked.
Analyzing the next due dates, Bianchi recommended the path that the government should take: “It is necessary that the government Go to these banks“In this sense, he explained that the country still relies on lenders of last resort such as the IMF or international banks, explaining: “We still are.” in a process of replacing debt issued to the general public in voluntary markets by shareholders or lenders of last resort.”
The benefits of a repo and the ability to reduce country risk
In terms of financial strategy, he claimed that using a repo would save time and improve future conditions: “Go out and pay off these bonds on January 9th with money from a new lender of last resort.” This reduces the country risk even further“.
The respondent also referred to the release of money laundering funds: “The money from the CERA accounts The publication will take place from January 1stHowever, he warned that these dollars may not remain in the financial system: “There are probably other usesperhaps consumption, the sale of consumer goods or the buying and selling of real estate.”
Regarding the year-end moves, he explained that the tax changes will reduce typical volatility: “That waiver that the prepayment gave them.” the pressure will drop slightly of the movements made at the end of the year.”
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