In the city there was relief as a result of Milei’s veto on the increase in pensions | The Merval increased 1.5 percent and sovereign bonds advanced nearly 2 percent

Lose stock funds recorded a rebound this Fridaywith an increase in sovereign stocks and bonds. These price increases occurred after Thursday’s fall, when the market reacted to the turmoil facing the government in Congress. The Merval ended with an increase of 1.5 percent, while there were sovereign bonds that advanced to almost 2 percent. However, the country’s risk level remained above 1,500 points.

The Central Bank bought foreign currency again in the official market, although this time the balance was almost 1 million dollars. In part, the delay in imports cooperates in buying foreign currency, waiting for the PAIS tax reduction in September. For their part, reserves registered the largest daily increase since August 5, climbing 189 million dollars and reaching about 27,845 million in absolute terms. he is blue dollarat the same time, worked unchanged at 1,350 pesos, while the mep dollar remained at 1,282 pesos.

At the international level, it was pointed out that the president of the US Federal Reserve (Fed, central bank), Jerome Powell, He said in his traditional speech, at a meeting of central bankers in Jackson Hole (Wyoming), “it is time for a change in monetary policy.” For this reason, he opened the door to lowering reference rates in September.

In particular, the Fed chief said the time has come for the US central bank to cut interest rates as rising risks to the labor market leave no room for further weakness and inflation is close to the 2% target “Yes upside risks to inflation have decreased and downside risks to earnings have increased,” Powell said.

So, on this day, the main indexes of Wall Street They were working up. The Dow Jones rose 1.1%, the S&P 500 advanced 1.2% and the Nasdaq rose 1.5%. At the same time, the dollar index fell after Powell’s words, which led to a rally in its major peers, such as the pound sterling, the Australian dollar and the New Zealand dollar. Sterling rose more than 0.8% above $1.32, the strongest mark since March 2022. Financials rose across the curve.

Returning to the local level, the Central Bank of the Argentine Republic made the process of returning damaged banknotes for banks through a new rule. It was announced after a board meeting last Thursday.

In the communication from the monetary authority, the provisions on “Cash Management” which is part of the prescribed text Circulation of Money has been updated, and it confirms that bills up to $200 in bad condition can be submitted without need to be pierced.

Traditionally, banknotes taken out of circulation are drained before being sent to the regulator. However, banks collect a lot of paper money, especially of lower denominations, which have been in circulation for a long time already and are greatly degraded. “We collected 100 million $100 bills and we could not punish them,” says a financial institution.

The problem is that drilling machines have a limited capacity and require workers to operate them, which means a large investment in time and human resources. The new rules aim to reduce this burden by allowing damaged banknotes to be sent without the pre-perforation step.

In addition, on September 9 this year, the activity of issuing banknotes that have been canceled in the Interbank Bank Note Clearing will be revoked, which means an additional change in the management of the fund that.