May 15, 2022 12:56 am

With a small purchase, the Central Bank cut its “mini-streak” of selling reserves

The Central Bank (BCRA) today managed to cut short its mini reserve sales streak by making room to repurchase some US$10 million, figure that represents barely 3.7% of the US$269.8 million negotiated by the official market.

Thus, closes the week with a negative balance due to its interventions on the market of around US$130 million, although so far this month it maintains a favorable result of slightly more than US$70 million, which, however, seems scarce given the fragile situation in your find your net holding of reserves (which reached the lowest level since the end of the governments of Cristina Kirchner), especially when compared to the US$398 million in purchases that it accumulated at this same point in January of the previous year.

Everything happened on a day in which the supply of foreign currency rebounded, helping the volume traded in the market to climb 54% compared to the previous day, a flow that allowed it to adequately supply the purchase orders that had passed through the official filter. and made it easier for the BCRA to slow down the rate of update of the official wholesale exchange rate, which closed the day at $104.14/104.34 per unit, just three cents above the closing level of the day before yesterday.

In this way, after advancing 56 cents at the end of the previous two weeks, the commercial dollar rose just 50 cents in the current one (0.48%), an update rate that lags it further compared to the level of indexation shown by the economy. and it further widens the so-called exchange rate gap, given the record prices set by both the blue dollar and the financial dollars (MEP and CCL).

The incidence of the gap on the supply and demand for foreign exchange

The level of backwardness accumulated by the official exchange rate is what explains the dynamism shown by imports and the slowdown exhibited by exports in recent months, which led to a sharp drop in the balance of the trade balance in recent months, something that the Government can no longer accuse the field that the day before yesterday poured about US$155 into the market million, that is, just over 88% of the currencies operated by the official market during that day.

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