In August, the central bank bought nearly US$1.3 billion in the market to boost reserves

The wholesale market traded at $422.9 million, today, Thursday, in the spot sector, as the Central Bank intervened, which ended the day with… Purchases worth $21 million. After 13 rounds of intervention in its favour, the monetary entity finished an active month of August in MULC, with Highest monthly amount of net purchases so far in 2023.

Most of these foreign currencies that the Central Bank included in its net reserves were achieved after the devaluation of the peso that it ordered after the primary elections and before agreeing to amend the objectives of the current agreement with the International Monetary Fund (International Monetary Fund).

After the wholesale dollar price rose to 350 pesos starting Monday, August 14, in the next 13 operating rounds, the cash entity won purchases worth US$1,127 million in MULC. Likewise, in On the 21st business day of August, the Central Securities Marketing Bank recorded net purchases of US$1,256 million.Since 2023, the balance due to exchange interventions has been negative by $2,280 million.

According to official sources, “With these purchases, the Central Bank has completed the best month of August in foreign currency purchases in the past 17 years, surpassed only by August 2006, when $1,611 million were purchased.”

marcelo elizondo, The researcher and professor of international business at the Technological Institute of Buenos Aires (ITBA) noted that it is necessary to reconsider Argentina’s economic relationship with the world. “We are a country that is overly dependent on foreign trade. We have grown. We sell things that the world buys: food, energy and minerals, but the world is growing more than us. We must have good companies that export,” he stressed.

jorge Bustamante, The co-founder of MBA Lazard stated that our country’s problem is “not only bureaucratic, but also a problem of vested interests” and that we must focus on competitiveness. “The key word today is competitiveness. Argentina has to open up to the world. Be competitive. Argentina has been closed for 80 years. We have an accumulation of shortcomings,” he emphasized.

Bustamante identified that there are two possible paths: leaving things as they are, or seeking structural change. “You can leave everything as it is, trust in Vaca Muerta, lithium, a good harvest, and that something will save us or implement a reform and make Argentina a competitive country,” he said.

the Reservations The central bank’s total international income fell by $94 million on Wednesday, closing at 27.940 million of dollars. In 2023, the stock of these assets will maintain a decline of US$16,658 million, or 37.4 percent.

“We believe that the world will play in Argentina’s favor in the near future: global inflation subsides, India begins to replace China as an economic engine, and the dollar stabilizes in favor of commodities and emerging markets,” he said. Diego Martinez BurzacoCountry Director of Inviu Argentina.

He considered that “a large part of Argentina’s problem is that we focus on the details of macroeconomic plans, but what the market is really asking for is the ability of the political leadership to reach a lasting consensus.” Javier TimmermanAdcap partner Grupo Financiero.

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