F & # 39; & # 39 emerging country; medium, the essential function of & # 39; Central Bank is to ensure offer & # 39; & # 39 devices; payment and & # 39; & # 39 in credit, compliance with the expansion of the real economy and, at the same time, Cherish volume & # 39; international reserves protect the local currency in which to express these devices & # 39; & # 39 fee and; credit against the volatility of the global financial market. Currency and credit to the domestic market and storage & # 39; & # 39 reserves; intervention It moderate external flow.
Since the beginning of its management the national government returned otherwise, signed by trade and financial openness to world b & # 39; tensions, Which relieved the movement of currencies and the predominance of & # 39; revenues by & # 39; instruments issued by the governing body to ensure rate & # 39; Positive real interest regarding the evolution of the exchange rate. a & # 39; a high interest rate, free movement & # 39; and bulky coins income in & # 39; dollars. Cocktail explosive if there is one, especially in & # 39; World & # 39; high protectionism, Crisis & # 39; multilateralism and restrictions on international liquidity.
Sturzenegger, the first president of the BCRA, was dedicated to expand the issuance of the letter of the Central Bank (LEBAC) on the open market f & # 39; levels that exceeded the monetary base. When started the external crisis, Caputo use the first installment of the IMF & # 39; US $ 15,000 million to facilitate the cancellation of most of LEBACs that were issued by his predecessor and now Sandleris use half a second charge multilateral agency & # 39; U $ S 5631 million to complete the payment of LEBACs that were outside the financial system. The rest of & # 39; letters were delivered by & # 39; optional way to banks and became letters & # 39; liquidity or LELIQ.
The government celebrates pump decommissioning & # 39; financial instruments venture is created with its monetary policy, without measure what cost U $ S 17,700 million & # 39; debt to IMF in exchange for painful adjustment plus & # 39; & # 39 loss; international reserves estimated at & # 39; US $ 10,000 million.
This demonstration is essential to know, in principle, if the Central Bank policies to promote financial recovery and exit of capital and completed, if the stability of the exchange between the variable area is sustainable.
It was stated in the & # 39; previous columnsthe Alliance changed although obtained the sanction of the National Budget & # 39; adjustment, a favorable vote of the IMF board for an extension of the original agreement and certain exchange "pax", could not recommend the private bid & # 39; foreign currency. In assessing the behavior of international reserves, a & # 39; noted that Sandleris reached the governing body b & # 39; bag & # 39; US $ 49 568 million to 16 & # 39; in November, was & # 39; USD 52 198 million. The increase was & # 39; USD 2630 million. But if the second IMF payment & # 39; USD 5631 million should be dismissed, loss & # 39; reservations within 38 working days was & # 39; USD 3,001 million. The capital continued drainage.
X-ray behavior of international reserves, let's see x & # 39; happens with weights, the situation described in the following table:
policy analysis implemented by the new authorities of the BCRA, which coincide with & # 39; The Zero Plan Cero, The monetary base decreased by & # 39; 6.7% while loans to the Private Sector decreased by & # 39; 2.2%. Monetary policy and & # 39; restrictive credit to deepen the ongoing recession.
On the other hand, The Cash Letters (LELIQ) which replaced LEBAC increased by & # 39; 110.9%, Which came in a whopping $ 355 460 million & # 39; and a half months with & # 39; rates starting at & # 39; about 73% and the latest cuts are 10 points below that cap. This change in bank assets of private sector loans because letters & # 39; & # 39 by liquidity, is financed by very high rates of growth & # 39; deposit & # 39; term public in the financial system & # 39; Ch $ 190 758 million, 24.7% also in & # 39; a half months
The growth of broader monetary aggregate & # 39; (M3) then explained b & # 39; 5%, despite the restriction of monetary policy. All weights are enclosed in banks b & # 39; letters and certificates & # 39; deposits.
Sandleris contract the monetary base and private credit, but at the same time Exponentially expanding speculative financial instruments, Concentrating the effects of & # 39; this policy in the banking system. Not put "loose" pesos market to put pressure on international reserves, but "paperes" the banks & # 39; letters b & # 39; high rates financiers. maybe catch & # 39; & # 39 deposits with, high rates also. The papers are filled in & # 39; financial institutions are financed by deposits, whose owners look at the time & # 39; each renewal each month as the dollar is quoted and x & # 39; it R- rate & # 39; Interest offered.
M & # 39; there is still "sovvitajiet of & # 39; monthly" with maturities & # 39; LEBAC to put the market in & # 39; suspens, but there is tension overlap rate & # 39; and interest rate & # 39; devaluation, which if The bank run can & # 39; be very complicated.
The Central Bank delete – & # 39; of & # 39 Boba; LEBAC & # 39; but pointed to – & # 39; & # 39 ;. crash LELIQ The difference is that the latter is all within the banks.