Limits on the purchase of dollars are beginning to prevail and expectations are expected as to the receipt of markets.

What began Thursday, with the press conference of Hernán Lacunza during which he informed the reperfilamiento of the conditions of the debt, continued Sunday when the government announced that, from this Monday, the buying dollars would be limited. He also stated that exporters needed to shorten their deadlines for liquidating currencies and that companies will not be able to acquire the US currency for hoarding. The set of measures aims to control exchange rate instability.

By Emergency and Emergency Decree No. 596, the Government established that natural persons could purchase up to US $ 10,000 per month. They also stated that with respect to transfers to third parties abroad, this limit will also be respected. However, for the accounts of the same owner, there will be no ceiling. Members of the executive were responsible for saying that "as many dollars as the customer could wish to leave the bank" and they even gave the entities the freedom to extend their hours of customer service until 17 hours.

The sources of the entity that runs Guido Sandleris explained that this measure "seeks to achieve greater currency stability and protect the saver. "More directly, the sources pointed out that no one" is limited to withdrawing money from their accounts, nor natural or legal persons ". "There is also no obstacle to foreign trade, nor restrictions on travel", They specified.

As far as businesses are concerned, exporters will have to sell the currencies on the local market within a maximum of five working days after collection or 180 days after transfer authorization (15 days for commodities).

The DNU also establishes that holders of certain public debt securities whose original maturity is out of bounds may remit them in payment in order to cancel social security obligations, such as contributions and contributions, due on 31 December. July 2019.

In its recitals, the standard explained that "before several factors that influenced the evolution of the Argentine economy and the uncertainty generated on the financial markets, the national executive authority It was necessary to adopt a series of measures the normal functioning of the economy, maintain the level of activity and employment and protect consumers. "

At the beginning of November 2017, and after a half-century of validity of the system, the government had removed the obligation to liquidate on the foreign exchange market the currencies derived from exports of goods, services and raw materials. Decree 893/2017, signed by President Mauricio Macri, Chief of Staff Marcos Peña and then Minister of Finance Nicolás Dujovne, took the necessary steps.

The market response

When the exchange rate starts on Monday and the dollar appears on the screens, the reaction of the market to the measures will be known. The same thing will happen when, on Wall Street, stock exchanges and shares of Argentine companies will be active. This will be the first thermometer to know if this was planned.

Meanwhile, economists are already moving forward what will be a tense start to the week. In dialogue with TN.com.arFederico Furiase of EcoGo said that these measures "they do not solve the structural causes of the pressure in the country risk and the foreign exchange market, which accelerated the loss of reserves since the results of the STEP "." The obligation to liquidate exports and purchase limits can moderate the draining of reserves, you can only save time, but with a very high political cost a gap will change in the informal dollar and the implicit dollar in the bond market and stock market, "he said.

With regard to the potential impact of the markets, it defines: "The political uncertainty about the continuation of the transition to elections, whether or not the disbursement of funds is made in September, with the number of reserves to which the current management is ends and the economic program of December 10 that will have the next management are the structural sources of uncertainty that will continue to wreak havoc in the country risk, in the foreign exchange market and in the reserves of the BCRA. "Asked about how to reduce this tension, he explained:" (It is necessary) that there is a cooperation between Macri, Fernández and the IMF, which today looks like utopia "

Portfolio Personal's Sabrina Corujo pointed out that these measures "clearly limit demand and increase supply". "This is the road that remained and we left Friday to wait," he said following the decision of the banks to request permission to transfer their profits abroad.

On the same line, Nery Persichini, an economist at GMA Capital, said TN.com.ar which was "the only way for the government to calm the foreign exchange market". He added: "On the supply side, there was no incentive to settle because we were expecting a devaluation higher than the previous STEP."

"On the demand side, uncertainty has led to it becoming even more aggressive in the purchase of dollars." The structural demand has been exacerbated by the election result. was to limit the demand. " , rated

The economist felt that the measures "they have matured and they have seen coming"." What may have surprised, is the speed. Last week was a succession of unfortunate events that cost companies and small investors who depended on Argentine badets a lot of money. The damage is very important, "he said.