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The teams of Central Bank President Guido Sandleris and Finance Minister Nicolás Dujovne have worked over the weekend in Washington, refining the mechanisms to place $ 60 million in the market from the start. today and on a daily basis. They are part of the 9600 million US dollars corresponding to the fourth disbursement of the stand-by credit of 57 100 million US dollars. The result of the sale will finance the Treasury's needs and the money needed to fuel a market conquered by political and monetary uncertainty.
Until last night, when the highest economic figures came back from Washington, the first meeting that Dujovne had shared with the agency's executive director, Christine Lagarde, had not transcended the operational details. the liquidation of currencies.
Dujovne and Sandleris have again gathered support from the body. In addition to the repeated badessments, especially those stemming from the third revision of the agreement ten days ago, which allowed disbursement of $ 10,835 million last week, new signs of support for Argentina were announced on Saturday. It was the powerful managing director of the IMF, the powerful David Lipton, who represented the United States. in the Fund, which first received the President of the Central Bank and the day before yesterday in Dujovne.
Lipton "reiterated the IMF's support for the government's stabilization plan, the ongoing efforts to achieve a zero balance in 2019 and the authorities' strong commitment to protecting the most vulnerable by expanding the social security network," said the -speaker of the agency.
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The finance and BCRA teams discussed the mechanism to sell US $ 60 million a day to the Fund's technicians in Washington at the World Bank and IMF Spring Assembly. There were recognitions in the country, but Dujovne also acknowledged the instability of the situation. Today, trial with the beginning of settlement of 9600 million dollars
The government took the opportunity last week to present in Washington its review of the program with the Fund, supported by the agency. However, on Friday, Dujovne acknowledged that "the financial environment remains unstable, especially after inflation due to inertia, some recovery in production margins, the normalization of service rates and rising prices ". in January and February, although it remains lower than the rates in the second half of last year. "
The mechanism
Part of this instability, precisely, has been one that has displaced the dollar market in recent months. In this sense, according to El Cronista, details of the auction of dollar loans have been completed to set the weekend with the Fund's technicians.
Since Hacienda, they confirmed today the beginning of the system of sale of currencies. The badembly of operations was in charge of the Central Bank. The monetary authority will inform today, through official communications, the result of the sale. A variation on the study by the government and the monetary authority would be to deploy the sale in more than one auction per day.
The market is eager to know how it will react in a place that ended down last week. Now, some operators are again afraid of an appreciation of the peso. "You have to expect the market to rise because, if it is low, it will increase the trend," said an indicator of the financial sector yesterday.
It will be remembered that the Secretary of Economic Policy, Miguel Braun, had already forecast in El Cronista that the sale of currencies obeyed the financing needs of state spending.
At the same time, Interior Minister Rogelio Frigerio told reporters in Clarín and La Nación in Washington that the package announced by the government this week (see page 3) will not include any announcements concerning the program with the IMF. Frigerio reminded them that the dialogue between the authorities and the personnel technicians is fluid and permanent. "We are still talking to see what additional instruments we can use to navigate this difficult route, but the president should not announce anything beyond this set of measures we have been working on these days," he said. declared.
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