Government estimates there is still $ 7.5 billion in foreign funds that could put pressure on the dollar

The government believes that the Central Bank still has a “back” to deal with pressures on the foreign exchange market until the end of the year, but recognizes that there is a group of foreign investment funds that they still have in their possession the equivalent of 7.5 billion dollars that they could try to get out holdings of pesos in cash with settlement.

The Ministry of the Economy will include in its tour of the United States which will begin on Monday a stopover in New York, where Minister Martín Guzmán will once again make contact with major investment funds, which he called to a meeting at the Argentine consulate.

One of the issues the Palacio de Hacienda will seek to discuss with investors in New York will have to do with the government’s financial strategy. There are a few large international funds, like Templeton, which entered the local financial market a few years ago and were “trapped” due to the stock exchange rate, they therefore seek an exit by the operation of “counted with cash”.

The Ministry of the Economy will include in its tour of the United States, which will begin this Monday, a stopover in New York, where Minister Martín Guzmán will once again make face-to-face contact with major investment funds.

According to sources from the economic team, some 7.5 billion dollars still remain in the hands of these external holders who could put pressure on the parallel rate of the dollar. In any case, they are discounted in the Executive Power, this sum will not suddenly return to dollarization. In this sense, they ensured that it maintains a “constant dialogue” with external stakeholders.

“What remains of the strangers is what they did trading. They come out all the time, every day, and there is still a lot left. There is a dialogue with the older ones because they are always in the peso offer. We are trying to lengthen the deadlines, ”they stressed.

For the Palacio de Hacienda, under current conditions “The exchange rate policy can be supported” and they believe the situation is more “solid” than last year, when the central bank had fewer reserves and the gap between the official exchange rate and the parallels reached 150%.

In the economic team, they rule out the government considering an exchange rate correction after the November elections. “Devaluations cannot be decided, but happen”mentioned an official source.

On the other hand, from the Ministry of the Economy, they believe that an agreement with the IMF will not imply a relaxation of capital controls, although they aim to attract investment in the real economy through funds. who bet on buying stocks. “These are the ones that interest us the most,” they explain from the economic directorate.

Regarding the latest readjustments of exchange controls, which included new measures for the “counted with liquid” and for the payment of imports, the Treasury mentioned that “the regulations must be made to evolve to avoid arbitrage without social benefit. arbitration should be disarmed, ”they said.

According to sources from the economic team, there is still some 7.5 billion dollars in the hands of these external holders who could put pressure on the parallel price of the dollar.

“Defensive settlements against trading it will continue to exist, ”they anticipated from Economy. Moreover, they denied that when there is an agreement with the IMF “the controls will not disappear”, they insisted. “Today if you open the capital account you will suddenly bring out all those who are trapped, and that generates a devaluationThey explained to the government on what is the logic of maintaining the exchange stocks.

Meanwhile, nearly Martin guzman they emphasized that the Central Bank “must add more reserves” to prevent exchange rate pressures from being more “resilient” to exchange rate pressures. “It’s a sequence. There is a defined horizon and we have to move forward, which is what we are doing ”.

“Today we have a behavior (among investors) called ‘wait and see’. After November 14, they have already waited and seen, it is clear and it will give more strength to the economy because there will have less uncertainty, ”official sources explained.

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