The government issues another bond on Monday to complete the monetary turnstile and ensure the end of the race

The government will try to permanently close next week the traumatic experience of bullfighting next week in taking a step further the gradual disarmament of the "ball of


Lebac
"in search of the consolidation of the exchange rate of peace and leaving the way open to promote, then, a gradual decrease of
interest rate, to the extent that the data


inflation
that you receive, allow you to be pbadionate about
a transfer at prices of devaluation lower than some expected.

Everything is centered on the monetary turnaround designed and launched since mid-June, which bases its effectiveness on a 40% increase in bank reserves which, in fact, it reaches 42 or 43% (hence the effects it has had on short-term interest rates) since the entities incorporate them below the standard by making use of a quarterly waiver that granted the management


Sturzenegger
in front of one of the last "supermarkets" to be able to dispose of these funds if they used them to buy Lebacs.

This plan will have, in the first part of next week, new steps:

– It begins Monday with the reopening of the Treasury 2020 (BOTE) which was proposed to banks in mid-June with a special attraction: a license to use to incorporate the reserves, which allows them to earn income for that money that was previously unavailable at the 0 rate. This is a security that pays a nominal annual rate of 26% (27.7% effective) of which $ 55,700 million already placed in mid-June, when the first lace increase of 3 which meant a monetary absorption of about 60,000 million, and for which they will be able to offer again this Monday between 10 am and 3 pm, ie 48 hours before the entry into force of another slice of the reserve. [19659006] – It continues Tuesday with the monthly offer of The Bins, a debt of about $ 536,000 million (half of a stock that is a little more than one. billion pesos but has already been reduced by 20% in one month) and a renewal of less than two thirds is expected. that the banks will use some of the money collected the next day to buy the BOTE 2020 (it is settled the same day 18) and badume with this paid badet the sum of 26 to 28% that they will face on reserves, which means locking in an additional $ 40,000 million and will also seek to replenish their holdings of cash, which are now very low, which explains why short-term rates have hovered between 60 and 70 % in the last hours.

-Close Wednesday with the increase in reserve requirements (which will complete the withdrawal of 160 000 million dollars, a figure which supposes 15% of the monetary base but which makes 180 000 or 200 000 million dollars for the under-integration of reserve requirements) and the liquidation of Titles T and BCRA that will allow banks to arbitrage between the two.

The placement of the 2020 boat will mean the fourth fourth issue of debt in a month, since everything started with its original bid (in mid-June) and the Double Bonus 2019 (unknowable and payable in pesos or dollars) which was then subscribed primarily by investment funds Black Rock and Templeton with currencies, which then granted the first exchange rate truce. To this we must add the Double 2020 Bond, placed this week, and the reopening of the Bote 2020.

Consulted by the repeated questions, from the Ministry of Finance and the


BCRA
recalled
THE NACION that the offer of debt that can be subscribed on Monday "is part of the package of coordinated measures" between the two agencies a month ago in order to restore exchange rate stability. "This is not an investment that does not provide us with funds, since the bulk goes to the reserves and stays there, the idea is precisely that there is no problem monetary policy, "they stress.

For badysts next week is the last step to take to determine whether the race, as it seems nowadays, is coming to an end. Of course, after, the daunting task of staving off the economic damage done in trying to preserve the benefits of having regained a level of trade competitiveness that can help rebalance the current account and generate the dollars of which the country will need to pay the debt with that the government has covered its decision not to make adjustments for two and a half years.