“What will happen to the peso in the future? Only God knows”: Adorni and the impact of the new monetary measures
The presidential spokesman referred to the government’s decision to intervene in the financial dollar market through the Central Bank, which will use the dollars received for export settlement to sell them in the free exchange market.
“It’s about continuing the absorption of pesos, ending the last issuance tap,” Adorni said, justifying the measure, which he defined as a “tightening of monetary policy.” “There are no changes in the exchange rate policy,” he stressed and affirmed that the objective is “to absorb 2.5 billion pesos.”
He also dismissed the complaint of the Secretary General for Banking, Deputy Sergio Palazzo, who had spoken volumes about “gold from the BCRA reserves going abroad”.
Miley Scalenetta wants to join the Victory: she invited the players to the Casa Rosada
President Javier Miley returns from the United Statesafter his eleventh international trip, without any investment announcement. Good news was received from the northern country from the hand of Argentina national teamwho was crowned as the two-time champion of America early in the morning. Miley immediately celebrated on social networks and then He said the balcony of the Casa Rosada was open to welcome the champions. “If they are ready to welcome us, it will be a matter of joy for me, it is their victory and reward,” Kendra said.
After the ceremony in the early hours of Miami, The national team players started over upon their return to Argentina; but they did not do it together, nor will they continue to do so. Captain Lionel Messi, who was injured in the second half, will not return to the country; and he will remain in the same city where he lives since his transfer to Miami International; neither will Nicolás Tagliafico or Emiliano “Dibu” Martínez return to the country. While Julian Alvarez, Nicolas Otamendi and Geronimo Rulli will travel to Paris to join the Olympic Games team.
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Treasury refinances debt with the Central Bank
The National Treasury refinanced 60% of the maturity of a non-transferable bill with the Central Bank for an amount of US$35 million.
Tomorrow the National Treasury must pay the third interest coupon of a “non-transferable National Treasury bill in United States dollars” maturing on January 16, 2033 and to pay it it has decided to extend the issuance of the same instrument and return it to the Central Bank. In this way it increases its debt against the monetary authority by 35 million US dollars.
The extension was ordered through the publication of Joint Resolution 39/2024 of the Ministry of Economy and the Ministry of Finance. The original letter was issued by the National Treasury in January 2023.
Bonds open higher
Argentine bonds are trading with slight increases in pre-market operations, following announcements made by the national government to curb the dollar’s rise.
The titles throughout the list rise between 0.6% and 1% and bring the Palacio de Hacienda to the first relief. The Stockbroker Board reference bonds show a rise of 1.02% in the GD30, while the GD35 has risen by 0.9% and the GD29 by 0.86%, being the most notable.
Over the weekend, the government announced that it would intervene in the exchange market to control cash with settlement and that it would buy the bonds needed to pay interest on bonds maturing in January 2025. This is a financial response to the market. Through its decision to dollarize, it demands from the government a concrete plan to get out of the exchange rate trap.
Monetary planning plays its final role
by Raul Delatorre
“Let’s see, let’s put it in context: if I took the dollar that, for example, she (Silvina) Batacis had before Massa took office, I bring it today, it is at 3,000 (pesos). So, no panic “zero” panic,” replied the president of the nation, Javier Miley, to the question of whether he was concerned about the jump of the financial dollar to 1,400 and 1,500 pesos. Despite this, a few minutes later, he revealed a typical decision of no panic situation. In the same report, he gave the bombshell news: the Central Bank is going to “intervene” by selling in the unofficial exchange markets the dollars received for the settlement of exports to “reduce the gap” (the difference in price respect to the official dollar).
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An announcement to try to calm the markets: Caputo comes forward to guarantee the payment of bonuses
The Ministry of Economy announced yesterday that the Treasury will purchase and transfer the dollars needed to meet the interests on Globals and Bonares bonds maturing in January 2025. “The full payment of interest on Globals and Bonares bonds maturing in January 2025,” the statement indicated.
“This operation will be carried out with part of the pesos corresponding to the fiscal surplus obtained in the first half of the year, which had accumulated to $2.3 billion as of May,” he said.
He also specified that “the corresponding US$1,528 million shall be deposited with the trustee, the Bank of New York, to be available for use solely for the aforesaid purpose.”