The reserves evaporate as if they were water | From …

The fall of the reserves has become one of the main financial problems of the local economy. Since 9 April, the date of the last payment by the International Monetary Fund (IMF), more than US $ 11,904 million has been lost from the Central Bank's reserves: a situation that shows the country's heavy reliance on foreign investment. quarterly IMF disbursements. Market consultants have begun to worry about the rate of falling money of the monetary authority. In the day yesterday, the reserves closed at 65,595 million dollars and registered a decrease of 18 million compared to Friday.

The last disbursement of the IMF was $ 10,800 million. The international credit agency made the transfer early last month. Of this total, $ 5900 million has already been used for principal and interest payments on bonds and loans from the country. In addition, $ 1.620 million was lost for daily Treasury sales and $ 1,146 million for the cancellation of Letes, while a loss of $ 600 million was due to the yuan price difference ( the currency in which the third is stored). part of the reserves).

The data was published yesterday by the PxQ study of former Deputy Minister of Economy, Emmanuel Alvarez Agis, in a weekly report on financial developments.

The consultant ensures that imbalances in the internal market are alarming and presents other indicators to demonstrate this. The paper highlights the country risk situation: it is above 900 basis points, while the country risk of the average of the Latin American countries is 416 units.

The Central Bank announced a few weeks ago that it would intervene on the foreign exchange market if necessary to end the soaring dollar. This helped to contain the exchange rate pressures in May and to maintain a relative stability of the price of the wholesale currency at around 45 pesos. The lower uncertainty in the exchange rate did not encourage investors to keep their dollars in the local market. Investors who charge capital or interest on Argentine bonds have decided to a greater extent not to reinvest them in government bonds.

This has resulted in an acceleration of foreign exchange outflows and an increase in the risk premium paid by the Argentine debt, which already doubles the regional average. In May, the highest yields in recent years were recorded for some short- and medium-term bonds. The 2020 Bonar ended up bringing in about 40% of hard currency in a year and a half, a yield that does not exist in other countries of the world that pay their debts on time and in shape as it does with Argentina.

At the same time, the Central Bank continues its policy of high interest rates in local currency. Leliq's short-term yields closed at 70.83%, a leap compared to 70.82% last Friday. The monetary authority renewed Monday 194 billion pesos in Leliq.