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Foreign exchange bleeding is back and Country Risk has set its record

The price of the dollar rose again to $ 58.66 yesterday and the country risk indicator rose to 2,001 basic points, the highest level in 14 years, due to the political uncertainty given by the alleged end of the truce between the government and kirchnerist Peronism.

In the average of the windows of the banks, the dollar rose $ 1,45, up to $ 54,70 for the purchase and $ 58,66 for sale, despite the official sales for U$S 362 million.

Argentina’s country risk indicator jumped 9.9% to 2,001 basis points. S&P Merval fell 4.75% and the roles of Argentine companies operating on the New York Stock Exchange collapsed to 14.6%.

Sovereign debt bonds also suffered a sangria: the $ bond 2020 sank 13.2%. In the month, that paper falls 42.24%. And its internal rate of return (IRR) stood at 99.9%, that is, an investor buying this paper today will charge more than twice its investment in October next year.

In this context, international reservations continue to contract. Yesterday they closed at us $ 57,473 million, falling 442 million on the day. And in the last month,$10,598 million went down.

This situation is in the midst of a rarefied political climate, which the government described as a unilateral break from the truce by The Front de Todos and its presidential candidate, Alberto Fernández.

Sale of foreign currency

The local exchange market deepened the bassist trend that hit the rest of the region’s currencies. Even the frenzy of the buyer forced the monetary authority that leads Guido Sandleris to extreme his intervention to try to avoid speculative leaps.

The Monetary Authority conducted seven auctions for about US $ 302 million in the cash market, breaking the $ 250 million ceiling that had been imposed in the credit agreement with the IMF.

So far in August, the Monetary Authority has sold$1.061 million to respond to a demand energized by the uncertainty generated by the electoral scenario. The rest of the collapse of reserves is due to the payment of debt and the repayment of international loans.

In addition, the National Treasury made the usual daily sale of 60 million also on the spot market. This money is also part of the loan the Fund made to Argentina last year and which is expected a new disbursement for$5400 million, which is now entered in the zone of uncertainty.

In the banks ‘ windows there was an average rise of 2.5%. Some private entities took the ticket a couple of steps further: The Macro Bank placed it at $ 61 ; Galicia, Supervielle and Banco Ciudad placed it at $ 59.

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