Argentine markets fall into an unstable market due to investor caution in front of the International Monetary Fund and Ukraine

BUENOS AIRES (Reuters) – Speculative moves in positions fueled a selective slump in Argentine assets on Wednesday, as the focus was on progress on a deal with the International Monetary Fund to restructure the debts of millionaires and geopolitical tensions between Russia and the West.

Argentina will have to pay in March the maturities of about $ 2,900 million to the International Monetary Fund and another 2,000 million to the Paris Club, when the Central Bank (BCRA) does not have the necessary liquid reserves, and analysts expect an agreement soon with the organization.

“Investors are looking forward to the IMF deal negotiations, the Russia-Ukraine conflict and the performance of the US Treasury rate,” Research for Trades said.

He added, “Despite the positive outlook for an agreement with the International Monetary Fund, macroeconomic stability is essential for these financial instruments to start showing a positive trend in a sustainable manner. In the meantime, volatility will continue.”

The United States and its allies revealed, on Wednesday, more sanctions against Russia over its recognition of two separatist regions in eastern Ukraine, while making clear that stricter measures were taken in the event of a comprehensive invasion by Moscow.

* Argentine state risk as measured by JP. Morgan Bank rose four units to 1,729 basis points in the local afternoon (1530 GMT), compared to a low of 1,083 points hit in September 2020 after closing a massive debt swap abroad with the private sector.

* Bonds in the local OTC market lost an average of 0.4%, due to short profit taking in highly liquid dollar issues.

* “Bond support remains the close agreement with the IMF and a quieter domestic front of the exchange rate, with

“Sharp decline in the dollar implied,” brokerage StoneX said.

On the stock exchange, the S&P Merval Index fell 0.27% to 90,196.01 points, after a bullish start and intraday earnings, traders said.

* “The domestic index collects more than 400 points measured in dollars,” said clearing and settlement agent Neix, adding that “Cedears remains an option to place a surplus of peso, which increases exposure to the international market.”

* The interbank peso fell 0.11%, to 107.31 / 107.32 per dollar with regulations issued by the BCRA, which had to give up about $55 million the day before to provide real demand.

* Nix said: “The total liquid reserves that BBK can sell in the market are close to 14 thousand million dollars, which gives it a window of time until the liquidation of the heavy harvest begins in April,” but stressed the need to put it up. “Pay attention to the fact that the level of net reserves is critical, as it is close to zero after the last IMF payment.”

* In the informal market, the peso remained balanced at 210 per dollar with lower trading, while in the “Calculated Liquidation” (CCL) stock market it was trading at 211.8 and in the so-called “MEP dollar” it was operating at 197, 3 per unit.

(Reporting by Walter Bianchi; Collaboration with Hernan Nessi; Editing by Jorge Otaola)