Sandleris's message to the "wounded" of financial cycling

In the monetary tables of the major banks, they said the dynamics of the dollar was worrying. The BCRA validated maximum rates of 63.50% on Tuesday, but the bill increased by 25 cents to $ 41.50.

"There is more demand for local or private companies, although there is a greater appetite for coverage of foreign investors, that is to say, there is more demand for local or private companies, although there is more demand for foreign investor coverage, ie "stranger," explained at the head of a leading entity on iProfesional.

"All this is very difficult, it takes a lot of time for foreigners to enter the Leliq rate, so we have to give him some time to see if he stabilizes the exchange rate," he said. declared.

"There is no demand from retailers and very few companies, but from outside." They had bought many peso holdings when Sandleris appeared, then the carry trade was decommissioned by the devaluation ", add the banks.

The Foreign investors exit bonds in pesos, like Lecaps that the Treasury issues and asks for a way to protect itself from a devaluation.

This increased demand for badets that protects the gain in dollars after the exchange rate hike of more than 13% over the year and peso rates have not yet reacted to the new increases applied by the BCRA, is what drives the foreign exchange market.

Curiously, the Treasury missed the call of its Letes in dollars and the reopening of the BONCER (borrowing in pesos adjusted for inflation).

They were worth $ 913 million, but the market was worth $ 860 million. (which have been almost entirely taken). The rate was what the government wanted: set at 4.5%. It is an instrument that expires on October 11, 2019, two weeks before the presidential elections.

And with the BONCER for 2021, a total of $ 30,653 million was awarded, but the yield was 9.37%, while in the secondary market it was 9%.

At the Central Bank, it is clear that the number one priority is the stabilization of the dollar. It would be worrying that the note continues to climb in the midst of a sharp rise in rates.

But the entity has few letters in its sleeve: the strongest is the interest rate when one prays for the dollars of the fields and Dujovne negotiates with the IMF to sell nearly 9 000 million dollars as of the month from May.

"We think it takes time for the market to read the message we send with this tool, "said a very important source of the plant in reference to what they do in the Leliq auctions.. "You have to give it time because the effect of the rates is not immediate," they recall.

Even in this case, they run the risk of not reaching the time needed for the market to "recalculate" the new system and the dollar continues its upward trend, generating a "snowball" process.

"Argentina has many challenges to face, we have marked the overvaluation of the peso at that time, which is only beginning to decline, but the most important challenge remains the positioning of investors. In recent years, there has been an avalanche of capital inflows, making it difficult to find buyers nowsaid Robin Brooks, chief economist at the Institute of International Finance (IIF), a Goldman Sachs alumnus.

What the banker says is that after being hit by the devaluation, investors' fear of getting their dollars back (and going into pesos) is very great; and this imbalances the foreign exchange market.