The dollar reaches a new record and continues to be wary

The depreciation of the peso accelerated in Argentina on Friday after the dollar reached a new record despite attempts by the central bank to reduce its value and in a context of persistent mistrust of the markets.

Currency The US dollar closed at 29.40 pesos, 80 cents more than the day before, according to Banco de la Nación Argentina. The bill recorded its fourth consecutive increase

According to analysts, the decision of the central bank to raise daily auctions to $ 150 million on behalf of the Ministry of Finance was not enough to stop the rise of the currency. The situation is due to the fact that the mistrust persists in Argentina despite the fact that the South American country has obtained a loan of 50,000 million from the International Monetary Fund this month (IMF) following a crisis monetary and that after nine years to be considered a border market, Argentina has again qualified as "emerging market".

Analysts question economic developments and the lack of clear signals on the government's commitment to reduce the budget deficit agreed with the IMF as well as the concern for deterioration from the economy, which recognized the executive itself.

President Mauricio Macri, a conservative who came to power in late 2015, tried to instill confidence in the face of growing uncertainty.

"When we promise that we will reduce the prob deficit currency, that the markets are discussing it, we say" yes, we will do it, "said Macri at an event in Entre province. Ríos, Eastern Argentina.

Macri said that "the world is in a mess" and "there is not as much credit" so Argentina has to solve "the structural problems." [19659002] The dollar, the reference currency in the Argentine economy and refuge for small savers, accumulates a rise of more than 50% that goes from year to year.The loss of the value of the peso, in turn , re-inflates inflation.The government itself estimates that 2018 will close with a price increase of at least 27%.

The president has received support from some governors of the government. Peronist opposition who expressed their willingness to contribute so that the country reaches the target of 1.3% budget deficit in 2019 and zero challenge cit in 2020, as promised to the IMF.

"Argentina is much more punished" than other countries, said economist Guillermo Nielsen on La Red Radio. although it weighs "the storm of the world" they influence in the complex situation the local politics as the exchange that the markets do not finish "to understand" and engender mistrust.

"We do not just have the pressure on the dollar and the bonds of Argentina and this generates a moment of uncertainty because it means that there are less of a problem. capital inflows, as well as difficulties in financing the public and private sectors, "he said, or the former finance minister

Nielsen pointed out that the government of conservative president Mauricio Macri should try to regain confidence because applied policies "have created confusion" among investors who "have fled in financial terms and are trying to find safer than Argentina. "

The economist said that the authorities do not end up explaining the values ​​of financing that the country needs and although there are" estimates … the government does not end up ". dares not give a realistic vision. "

the leftist deputy Fernando Solanas, the government" repeats formulas that have not worked "in the past." The investment can not come with this inflation … inexperience and political adventurism have led us to this disaster, "he told reporters.

The government has been trying to give confidence to the markets by the recent renewal of the authorities. banking issuer and the implementation of several measures to absorb excess liquidity in the financial system.

He also began using a portion of the IMF's million-dollar funds a week ago to stabilize the foreign exchange market – although for a short time – the dollar rises

The Central Bank can use a total of $ 7.5 billion of this loan in the execution of a bidding program daily to deal with the depreciation of the peso. The initial schedule provided for the sale of $ 100 million per day for 75 working days, although the Department of Finance said that "it is necessary to adjust the schedule for seasonal weight requirements, readjustments correspondents will be announced in due course.