Fiscal day: Stocks and bonds rose on confirmation of the arrival of IMF dollars

Argentina’s stock market assets ratified a price hike on Wednesday due to approval International Monetary Fund International (International Monetary Fund). 7.500 million disbursement dollars, after approving the goals of the program signed with the administration Alberto Fernandez.

In the midst of a severe financial crisis, the Argentine government has been waiting for this new money from the agency to deal with mounting pressures on the local currency and with inflation that is running at 113% annually and threatening to outpace.

bonds worldwide Exchange – in dollars with foreign law – It rose by 0.3% on average On Wall Street, with which they extended the recovery that began on Thursday of last week, to be closer to their prices before the move.

In the face of this behavior, risk country Measured by JPMorgan yielded five basis points, l 2036 units 5:30 p.m

stock index Standard & Poor’s Merval from the Buenos Aires Stock Exchange It rose 3.6% to 615,499 unitsafter hitting an intraday record high of 616,246 points and making gains of 33.4% in pesos in the last nine rounds.

“The S&P Merval index remains attractive despite the recent gains,” he said. Reuters Operator, and pointed out that “its value measured in dollars leads to the market continuing to strengthen the trend.”

On Wall Street, most Argentine dollar-traded stocks ended up gaining. preside over Galician group (+6.3%)Edinur (+4.6%) and Glopant (+4.1%).

“The IMF Board of Directors approved the disbursement of $7.5 billion,” the economic portfolio said in a statement, after the agency completed the fifth and sixth combined review of its $44 billion debt program.

A central bank source said Reuters The funds will be used in part to repay a US$775 million loan in SDRs to Qatar, to reduce the level of currency swap activation with the People’s Bank of China, and to repay dues to the Development Bank of Latin America. and the Caribbean (CAF), which lent the government $1,000 million.

This drainage is key for the government, which intends to keep the economy in balance ahead of the presidential elections in October, in which it will face opposition candidates with a still uncertain outcome.

The economy is moving in a complex scenario of stagflation with dollar coverage in the face of complex pressures on retail prices, high fiscal deficit and BCRA net reserves in negative territory.

MAE sovereign debt posted a moderate gain of 0.5% in pesos, led by the positive trend in dollar issues, after improving by 1.5% the day before and declining just over 10% last week on intrigues unleashed on Milli’s political repositioning. .

The effect of the devaluation, which encourages the liquidation of exporters while limiting the demand from importers, has led to the maintenance of turnover in the foreign exchange market at a tangible level of 325.7 million USD in the spot sector, which has allowed the devaluation, which encourages the liquidation of exporters With the reduction of demand from importers, turnover in the foreign exchange market at a significant level of 325.7 million USD in the spot sector. central bank ended b The balance of the buyer in the wholesale market for the seventh session Consecutive.

Preliminary data indicates that BCRA ended today’s conference with consolidated purchases of approx $101 millionAlmost,” he said. Gustavo Quintanaoperator of PR exchange brokers.

Although it’s still far from the intraday record of $795 from a week ago, The currency rose for a second day It closed that Wednesday with a profit of eight pesos, $735 for sale. With the wholesale dollar settling at $349.95, the exchange rate gap reached 110%.

He commented, “Maintaining such a high exchange rate gap means that expectations of currency depreciation will remain high throughout the electoral process until the general election, and even more so, after the election.” Personal Portfolio Investments.

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