Operators indicated that "in four minutes, the BCRA bought the total announced, with an average purchase price of US $ 37,099."
While this is happening, dollar operating stable at US $ 38.18 in Buenos Aires city agencies and banks, according to the average domain.com.
Yesterday, for the first time since the new monetary scheme was implemented, the Central Bank bought $ 20 million in an auction after the wholesale dollar again drilled on Thursday the floor of the nonintervention range, intensification of the supply of foreign currency by exporters and a limited seasonal demand from private investors.
On average, the currency that operates in the Free and Single Currency Market fell below US $ 37,355, the price of the lower part of the non-intervention zone stipulated for this Thursday, which allowed the BCRA to act in the square, this time to buy dollars, something that was not done more than a year and a half ago.
"Sales orders did not go down all day, forcing the lowest prices," said analyst Gustavo Quintana, who led the dollar to drill the floor of the zone without intervention, which fluctuates daily at 2% a month. based on a recent agreement with the International Monetary Fund (IMF).
Thus, after 13 hours, the monetary authority announced "a single auction for the purchase of foreign currency in cash and bilateral (delivery of counterparty once confirmed receipt of funds)" to up to $ 20 million (avoided using the daily maximum of US $ 50 million, self-imposed), which it acquired in full, two minutes after the announcement, at an average price of US $ 37.3050 per dollar, in order to support the value of the currency.
Official sources noted that "both the average price and the maximum purchase price were US $ 37,305, five cents below the minimum non-intervention area." As a counterpart to the purchase intervention, the BCRA injected US $ 746.1 million in the market. "
They added that, as the scheme contemplates, the pesos injected by this type of purchases increase the monetary base's target. In January, the impact of this specific operation is US $ 529.49 million (746.1 x 22 days remaining from 31 days of the month). In the following months, the impact on the target will be total (US $ 746.1 million).
The last foreign exchange purchase that the authority had made since the beginning of June 2017, when it acquired $ 50 million (with a dollar of $ 16).
However, after the entity leading Guido Sandleris conducted the auction, the wholesale price not only did not stop its downward trend, but deepened and closed with a drop of 29 cents to $ 37.09, 0.7% below the bottom of the "zone". It's the lowest price in over a month. The total volume traded in the foreign exchange market fell 6% to $ 603 million.
"Official purchases of small amounts in relation to the flow of income could not generate a reaction of the wholesale dollar that touched minimums at $ 37.08 in the last section of the session," Quintana explained.
Fernando Izzo, of ABC Mercado de Cambios, pointed out that "the agreement with the IMF was to establish resistance and exchange of support, but did not determine in what conditions, so it was at the BCRA's discretion. this system does not have a fixed price as the council says and nor an amount of intervention ".
Recall that last Monday, the wholesale currency had already drilled the floor of the non-intervention strip for a portion of the day. However, the price rebounded towards the closing, ending within the "zone", and without the participation of the BCRA.
Economist Miguel Kiguel of consultancy Econviews said that if the BCRA continues to "intervene so that the exchange rate remains in the trading floor, we should see a faster fall in the Leliq rate."
Only at the end of the round did the Central validate the fifth consecutive decline in the Leliq rate, which averaged 58.445% (compared to 58.782% on Wednesday).
The monetary authority placed Liquidity Letters for $ 151,332 million (maturing at $ 151,371 million), with a maximum adjudicated rate of 58.747% and a minimum of 57.75%.
"Luxury came out today, the BCRA bought $ 20 million, with the exchange rate below the band's floor, and accelerated the Leliq rate down, with controlled monetary expansion, with country risk falling back (yielding 4 points to 704 units), "said economist Federico Furiase of Eco Go.
At the tables, however, some questioned the effectiveness of the official auction mechanism to keep the price of the currency within the parameters established by the current monetary and exchange rate policy.
It is worth noting that the cumulative of these auctions can not exceed 2% of the monthly monetary base target, as notified by the authority at the beginning of the month.
Other Money Markets
With the value of the currency depressed, the financial business starts to have weights in the portfolio, not dollars in position, they reiterate in the tables.
In this context, "we should choose which asset in pesos is best, measure risk and maturity at very high rates, especially for banks, with Leliq, call money and foreign exchange swaps, all above 58.46% for a minimum of 54 %, "Izzo said.
In the informal dollar market, in turn, blue sank 50 cents to $ 39.25, according to the survey of that medium in caves in downtown Buenos Aires. In turn, the "contad con liqui" rose 22 cents to $ 37.24.
In the future ROFEX market, US $ 436 million were traded, of which more than 60% were agreed in the months of January and February, operating at the end at US $ 38.08 and US $ 39.40; with rates of 46.87% and 46.61%, respectively. All terms were left with losses of at least 40 cents.
On the other hand, Central Bank reserves increased US $ 96 million to US $ 66,041 million.