Dujovne launches a new strategy and the dollar falls sharply

The government is launching today our strategy in its attempt to stop the
dollar, dispel doubts about the future of the exchange rate and contain the rise in inflation in the final stretch of the presidential elections.

From today, at the request of the Ministry of Finance, which manages

Nicolás Dujovne

, the

central bank

will auction daily dollars mainly from the agreement with the International Monetary Fund (

MFIs

). With increased local currency supply and increased liquidation of agro-exporters, the government is committed to stabilizing the market.

In a statement, the Ministry of Finance confirmed its intention to "auction US $ 60 million daily up to a cumulative total of US $ 9,600 million", so that sales will continue until the end of the year. next November. They will be about 1200 million US dollars a month.

The operation will be entrusted to the Central Bank, which details the mechanism that will be implemented each day. As indicated, there will be two daily auctions, at 12h and 14h45, minutes before the end of the day of the exchange.

Entities intending to participate will have three minutes to make their offer. Participants can express their interest with up to two positions and the minimum amount will be one million dollars.

The mechanism was negotiated by the government's economic team with the IMF authorities, which, under the terms of the confirmation agreement signed in 2018, establishes a free float zone for the dollar, set today. For a big dollar between $ 39.73 and $ 51. , 42.

At the first auction, the BCRA allocated $ 30 million, at an average price of $ 41.55.

At the announcement of the auction mechanism, Minister Dujovne said that through this strategy, the Treasury will sell dollars in order to earn pesos to finance current expenses (wages, payments suppliers, works, retreats).

"The goal is to make us pesos, it's not to do the exchange policy,"
Dujovne pointed out in mid-March, during an interview in Washington, that he was trying to dissociate the auction plan from a government intervention on the exchange rate, which is opposite to the interests and vision of the IMF, which wants a free quote of the currency.

In this context, the price of the currency accentuates the fall of the local market and the retail price crosses the 43 dollars, after a fall of nearly 4% last week. In Banco Nación, the currency is offered at $ 42.60.

The wholesaler, meanwhile, opened the day at $ 42.19 and ended the day with a 57-cent drop, after touching a minimum of $ 40.40 in the early hours of the wheel. Thus, the exchange rate is appreciated by 1.3%.