Thursday , August 18 2022

The BCRA deepened the downward trend in interest rates despite the jump in the exchange rate



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God Central Bank Performed the daily auction of liquidity letters (LELIQ), Exclusive to banks and referral to the financial system, with A low yield, In front of the foreign exchange market presented by Rebound is important for the dollar, Sustained by demand for coverage.

The central bank laid down this Monday To $ 134,579 million In LELIQ with low performance, low to 61.237% at the average cut rate. The maximum rate granted in these letters in eight days was 61,749 percent.

Why? The fifth wheel was ten consecutive Yields, this time from 61.405% on Friday.

Against redemptions of $ 132,266 million on Monday, the monetary entity took $ 2,313 million for this instrument, It has aspirated through LELIQ about $ 189,243 million Since the beginning of October, an amount equal to 16.1% of the monetary base, at $ 1,175,655.6 million as of November 15.

On the last wheels and against a Decrease in yields Of liquidity letters, The US currency continued the bullish bias, Always within the band of vibrations provided by the managing entity Guido Sandleris.

"Despite the sharp rise of the dollar, The BCRA approved a new interest rate cut, "they concluded Research for traders, Where they warned that he continued " Dismantling positions according to investment funds"After a partial renewal of LEBAC's redemptions last week, which involves a return to the financial market of about 122,000 million pesos.

This coming Monday The International Monetary Fund (IMF) He praised the effectiveness of the strategy implemented by the central bank and expressed that "the commitment of the authorities with The exchange rate is determined by the market Will enhance reliability Of the monetary policy framework Will increase the resistance Shocks external", In a statement signed by the head of the Agency mission in Argentina, Roberto Carrelli.

Of course use Such high interest rates have large costs Micro-economics and the future development of the exchange rate and inflation.

A report by Analogías described that "in the context of strong macro-economic uncertainty, Excess interest Come back univiable all productive investment And they only encourage financial speculation. "

The consulting added that "although temporarily Payments of the IMF And level – interest They seemed to contain the The exchange rate, this anchor is not sustainable over time, So it is committed to the recession of economic activity to stop the drain of foreign currency.

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