The plant used its artillery to prevent a further rise in the dollar, but will have to wait until Monday to see if it succeeded

The wholesale dollar closed the cycle with a 9 cent decrease because the central bank, to prolong the rise started at 1 pm, extended its intervention significantly and visibly on the futures market by placing itself in a sales position. .

If it 's been a boxing match against the peso, you could use the image of a coin that occupied the center of the ring and which not only withstood all the sales shocks of private buyers, but yielded to the end before the strengthening of the Bank. Central. But this intervention does not erase the upward trend of the US dollar.

Anyway, It was a wheel with little movement as the city seemed besieged by security forces and protests waiting for the G20 summit. In addition, the doubts generated by the result, announced after the closing of the markets, offers of Letes in dollars and Lecap in pesos were at the center.

All operations and all movements encountered difficulties. This is why the marginal market has been paralyzed and closed at $ 37, the same value as the day before.

In banks and bureaux de change, the dollar fell 4 cents to $ 39.54 with rare deals. Some branches have had chaotic behavior due to demand for pesos for the weekend. Many ATMs were without bills.

But as what is worth is what is coming, the result of the dollar auction of treasury bills has demonstrated the fragility of the entry of the economy. In the Dollar Letters that pay a rate of 4.75% per annum and expire on June 14, the result was as expected. About 80% of the deadlines have been renewed. About USD 1,098 million had to be canceled, USD 833 million was taken back, meaning they returned approximately USD 250 million to investors. The great incentive to renew was not to be affected by personal taxes by remaining invested in bonds at December 31st.

But where the supply of pesos has dropped considerably, it's in the Lecap. Last October, at the time of the auction of these securities, investors and investors offered $ 118,703 million, of which about $ 75 billion. At that time, the securities increased to 193 and 377 days and paid 4.57% monthly and 4.16% monthly, respectively.

On this occasion, the offers for Lecap were only 22,389 million. The 116-day bills, which expire on March 29, raised $ 13,245 million at a monthly rate of 4.46%.

As part of its offer to expand BOTE 2020, a bond that expires on November 21 and that in its first bid, awarded $ 45 billion, only $ 7,861 million was granted. The main clients of these securities are the banks that can use them as reserves of their deposits.

The other call for tenders, daily and the most interesting of the market, was Liquidity Letters (Leliq). This time, the central bank managed to absorb a significant amount of pesos. $ 120,051 million was placed at maturity for $ 97,934 million, which represents $ 22,117 million. The cut rate was 61.45%, which is 0.25 percentage point lower than that of the previous wheel. This is the lowest rate since these 7-day bonds that only banks can buy have started to be auctioned.

All this task of the Central Bank is to leave money without money to prevent the dollar from rising and cause a sharp drop in consumption that pushes inflation.

Maybe the end result of November is what they expected. The unknown is that inflation should not exceed 3% to be consistent with what the government wants. But December will be a different month. Inflation will not be easy to control and will likely exceed estimates. In addition, it is the month that seasonal workers and investors choose seasonally to dollarize their portfolios.

For all of this, reserves increased from $ 3 million to $ 51,466 million. Overseas, the rise of the euro yielded $ 31 million and $ 4 million was paid to international organizations and Brazil.

On the stock market, there was a slight increase of 0.70% with a high activity of $ 767 million. Banks have been the key to the rise. Galicia and Byma stood out with an increase of 2.67%.

On Wall Street, Argentinean ADRs, quoted in dollars and share certificates, were able to rebound after Tuesday's failure. Tenaris, which collapsed to 9%, recovered 3.94% and Banco Galicia rose 7.73%.

Bonds improved their parity and country risk dropped slightly to 705 points. A very high rate that puts the bonds on the edge will be reduced in its rating, which is very low.

The answer to everything that happened will be well known Monday, because Thursday, it will be only three hours of market. The dollar price will tell if the Central Bank and the Treasury have succeeded in this tender.