Sunday , December 5 2021

In the estimation of the Central Bank in the "Financial wheel" between the weight and the dollar was reduced to USD 500 million



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One of the first and the rapid effects of zero & # 39; emission policy, b & # 39; & # 39 high requirements; reserve and consequently rates of & # 39; high interest, b & # 39; of & # 39 xaqs current; more than 30 percentage points in relation to the rate of & # 39; & # 39 inflation; year, is that more residents turn to fixed-term deposits in & # 39; denominated bank by weight, and lower hedge funds enter the country in search of & # 39; easier entry into hard currency due to pending & # 39; Low devaluation expected.

Among the arguments used in the Central Bank to explain this phenomenon highlights "the role of the flexibility of interest rates rise or fall, f & # 39; & # 39 event, relevant movements flow & # 39; capital from abroad, Along with & # 39; large area & # 39; failure & # 39; intervention in the exchange & # 39; currency makes the price of the currency also can & # 39; leans strongly, as happened in & # 39; some passages last week.

Technical note that "the & # 39; non-intervention exchange area, which is very open, 29% between the tip of the current average selling price of & # 39; entities to customers & # 39; few and more than $ 36 purchase, nearly $ 47, classic band & # 39; & # 39 intervention; other times, because it does not imply a commitment to defend parity, but is porous violations ".

So, at the last meeting of the Monetary Policy Committee, two new criteria have been established & # 39; intervention, f & # 39; if the market value exceeded these extreme references:

1. If the exchange rate is below the area & # 39; non-intervention, the purpose of the monetary base will increase by & # 39; & # 39 purchases, dollars made by & # 39; offers from BCRA, which will be in & # 39; December to $ 50 million a day. Accrued monthly & # 39; these offers may not exceed 2% of the objective.

2. If the exchange rate is on an area of ​​& # 39; nonintervent, The purpose of the monetary base will be reduced by selling & # 39; dollars produced by & # 39; offers from BCRA. In order to maximize the impact on liquidity, these offers will be up to USD 150 million, the maximum contemplated in monetary scheme.

Concentration in control & # 39; monetary aggregates

And also, the sources explained to Infobae that 'adjustment reduction & # 39; monthly range & # 39; 2% intervention for the first quarter of 2019, based on the limits in force until the end of & # 39 ; December & # 39; $ 37.1 and $ 48 per dollar, based on signaling monetary policy is subordinate to control liquidity in & # 39; charges ".

And although this has not been the & # 39; now, he stressed that "interest rates will begin to move as & # 39; above and & # 39; below, in accordance with the trend towards dolarizzazzjoni portfolio or increase in demand for money, but as a store & # 39; value, "although this is a slow process.

Therefore, f & # 39; economy receiving several shocks, internal, from the questions at the political level, as external, the external situation, the Center justifies the need to maintain a wide range of & # 39; failure & # 39 ; intervention in the foreign exchange market until, at least, the end of 2019, "to preserve the goodness rate of & # 39; floating exchange, while helping to comply with & # 39; the rigid scheme & # 39 monetary aggregates, and therefore acts as a fuse. "

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