He blue dollar began to fall sharply this Wednesday, closing at 1000 pesos, and recording a collapse of 100 pesos on the day. After the collapse of the different financial dollars, the monetary authority’s reserve purchases are another sign of how decompressed the financial panic, after confirming the result of last Sunday’s elections. He Banco Central acquired 15 million dollars in the exchange market and accumulated interventions for 252 million dollars since Monday. This is the highest amount of purchases for three days since mid-August.
He unwinding of hedging positions that investors had adopted prior to Sunday’s elections, which determined a second round scenario between the current Minister of Economy, Sergio Massa, and the La Libertad Avanza candidate, Javier Milei, was key to explaining the sharp drop in the counted with settlement and the MEP from Monday. The CCL dollar had closed last Friday at 1116, so it had accumulated a decline of 21.5 percent until this Wednesday, when the price was at 888,99 pesos.
In the daily comparison, cash with settlement closed this Wednesday 0.1 percent above the previous day. Although it was down 7 percent until midday, in the late afternoon a price rebound was recorded, which placed the price at almost identical values to those traded on Tuesday.
The blue dollar, which in the first days of the week had not accompanied the collapse of cash prices with liquidation, this Wednesday began to align. The illegal dollar down more than 9 percent on the day, that is, 100 pesos, and ended at 1000 pesos per unit. The market considers that it has room to continue falling in the coming days.
To avoid exchange tensions in the coming weeks, and reinforce international reserves, the economic team has already begun to outline new measures. The Minister of Economy and candidate for president, Sergio Massa, has already announced a new export incentive program (PIE), which was open to the entire foreign sales complex for 30 days, whose liquidation regime enables all sectors to enter 70 percent of settlements through the single exchange market at 350 pesos, and 30 percent through cash settlement.
At the level of stock market assets, this Wednesday they also began to register rebounds in stock and bond prices. For example, the Buenos Aires stock market ended with an increase of 4.9 percent, and some companies rose up to 17.2 percent. An increase in foreign currency securities was also observed, such as the AL35D, which recorded an advance of 3.5 percent this Wednesday.
Wall Street investors consider that the result of the elections opens a better outlook compared to the leap into the void that was expected until Sunday, in the event of a victory for the ultra-liberal candidate Javier Milei. One of the statements was that of the founder of the American investment fund Greylock Capital Management, Hans Humes, who stated that an eventual victory for Sergio Massa in the presidential runoff would be “the ideal scenario” for the markets.
