Economists Expect Market Volatility from New Minister of Finance

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Diego Martínez Burzaco, Chief Economist and Director of MB Inversiones.

He felt that he did not believe that this diversion called into question the last disbursement of this year that the Fund "From 5.4 billion US dollars in September"but considered that "at most there will be a warning from the IMF", Martínez Burzaco said in a dialogue with Telam.

"These funds are essential for renewing very short-term financing in the Treasury and that's what the market is going to focus on." And that has an impact on country and dollar risk, " concludes Martinez Burzaco.

For its part, Leonardo Svirsky, Analyst of Bull Market Brokers, foresaw that "In the markets, there will be a lot of uncertainty from now until October and that will continue with volatility, uncertainty, the market will be dangerous", badysis.

The director of research for traders, Gustavo Neffaagreed that "The environment will remain very volatile, I expect a negative market reaction as a result of what happened yesterday with the ministerial exchanges."

Gustavo Neffa

Gustavo Neffa, director of research for traders.

Gustavo Neffa (@gneffa) | Twitter

Neffa explained to Telam that this bad reaction was due to the fact that "(Nicolás) Dujovne was the link with the IMF and, of course, all IMF projects to maintain the budget figures suffered a major setback with the latest measures that have a very high budgetary cost."

"Lacunza has turned out to be a very smart economics minister in the province of Buenos Aires and the market sees him as a very experienced, young, friendly market character. He will have a very difficult role to play for the next two months, " sharp.

He also enjoyed Sergio Mbada's trip to New York, looking for "Establish links with the (Donald) Trump administration."

In addition, an badyst at one of the major local market companies told Telam that "The closest and most immediate challenge for Lacunza as a minister is to see what is the relationship with the IMF."

"Lacunza and (Guido) Sandleris, president of the Central Bank, were part of the team that worked with the IMF to make the relationship fluid, but the latest moves deter the government from complying with the fiscal and economic situation. to take additional measures ", indicated.

He badessed that "The market will be for the moment attentive to the evolution with the IMF.The dollar, the market will depend on the progress of the negotiation."

"The only thing that should be accomplished, in the very short term, is that the IMF confirms a technical visit for the last week of August and meets to negotiate technical details and possibly certain conditions for the disbursement of the mid-term. September."

Santiago López Alfaro, partner of Delphos Investment, the investment consultant who predicted a difference of 10 points in favor of the Fernández-Fernández formula, ensured that volatility would be maintained: "We do not think a market recovery is starting.Now it's only for traders, only for specialists."

Santiago López Alfaro

Santiago López Alfaro, partner of Delphos Investment.

Santiago Lopez Alfaro (@Slopezalfaro) | Twitter

"Obligations are always in a bad technical position" He said, and as for the dollar, he expected that he would continue to be sued: "The power plant is working well, it raises rates and sells dollars, it must use dollars only to go into debt and work."

I consider that "Here, the most important thing is that on September 15, the IMF approves disbursement.There is a key for the future."