Monday , January 18 2021

The reasons for the dollar are seen



However, revenues increased during the hours, and the weak demand led to a significant drop in the price of the currency closed with a six-cent increase $ 37.91 to move again to work within "zone".

In this context, it is worth noting as one of the reasons for the original increase in the currency, BCRA's decision to limit Leliq's attitude last weekby determining that the maximum amount of these securities that a bank may have will be 65% of the customer's deposits or equivalent to 100% of the assets.

The financial units will have to adjust to the regulations by the end of April, but by the end of this month the figure will not exceed 100% of deposits, while the amount will be reduced to 80% in March.

This measure created an "over-reaction" to increase the demand for dollars as operators pointed to this portal, which led to the exchange rate returning to the non-intervention zone, which was reversed at the closing.

"From the start, it was clear that the trend in trend and climate was justified by an overreaction of the market to the new rules", operator Gustavo Quintana of PR Corredores de Cambio said.

Another reason that led to the rise in the price of the US currency is linked to dropped in rates implemented by the Central in January. In that sense, Amilcar Collante, economist at the Center for Economic Studies in the South (CESUR), explained that "The dollar was quiet for the whole month, and the fall in the rate reverberates" so the currency "will find a new balance".

"I think it's more local than external. Since January 25, you had a 10-point drop in the Leliq course. I think the dollar is looking for the new balance. Probably will not move so abruptly. With the return to the non-intervention area, central purchasing is limited and will not expand or issue pesos on that side, "he analyzed.

Do not ignore the fact that the purchases made by the monetary authority have affected the dollar rate, which last week resulted in more than 60 cents.

Consulted by this means that the operator Christian Buteler confirmed that the main factors in the increase in the currency are local. The first of the reasons was awarded "last week we had the strongest rate decline since the beginning of the current monetary policy." And the other one for "the communication from the central bank trying to limit the entrance to dollars solely for the purpose of making a charge".

also, There are grounds at global level that account for the rise of the dollar and are associated with the concern that US-China talks are not ending with trade war between the world's largest economies.

The greenback is driven by being a safe asset, as investors worried about a strong global economic downturn are seeking protection in the world's most liquid currency.

In this context, we must not ignore that this week, it International Monetary Fund (IMF) The third revision of the government's economic program will be implemented in the country, which could provide some definitions regarding the progress of the monetary plan.


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