BTN News: The economic situation is still tough. On Tuesday, the blue dollar went up again, and bonds in foreign currency went down. The country risk index is now close to 1550 points, showing the market’s worries. Recent statements got criticism from many sides, and experts want urgent changes in the exchange rate plan.
Financial Dollar Rates Increase and Stay Above 1400 Pesos
In the past few days, financial dollar rates have gone up a lot. All rates are now above 1400 pesos. The blue dollar ended at 1430 pesos, which is almost a 2% increase. The MEP dollar ended at 1428 pesos, up by 1.1%. The contado con liquidación (CCL) also ended at 1428 pesos, rising by more than 1%. These increases are big, considering the dollar was around 1050 pesos at the end of April. This shows a 40% rise in just two months. This change shows investors’ worries about Argentina. It affects not only exchange rates but also stock market prices. The Buenos Aires stock exchange has been very volatile in recent weeks. Dollar bonds fell, pushing the country risk above 1500 points.
Government Tries to Calm the Market and Maintain Confidence
The government is trying to calm the markets. The presidential spokesperson said, “We are not going to devalue. We will stick to what Caputo announced.” The official also said that “the balance of public accounts is guaranteed. Zero issuance is guaranteed, and the economic direction is guaranteed.” But these words have not gained market confidence. The economic team has been saying for more than a month that there will be no changes in exchange rate policy. They say the official dollar will rise at 2% per month until the end of the year. There will be no devaluation.
Market Speculation Increases as Government Denies Official Dollar Jump
Despite the government’s efforts, market speculation has increased. This has caused new tensions. The rising blue, MEP, and CCL dollars have made the exchange rate gap 50%. This puts more pressure to keep the official exchange rate. A report by Portfolio Personal said, “The market turned red for the second session after last week’s announcement (about a new zero issuance phase).” The report added that “the market reaction shows investors need more clarity on how to exit currency controls. The new monetary plan to achieve a positive real rate was not enough.”
Experts Want Clear Strategy and Timeline for Changes
Economists from many areas say there is no clear plan for the short and medium term. The economic team says there will be a zero issuance phase and zero fiscal deficit. But they have not explained how they will achieve this or how long it will take to lift currency controls. Without a clear timeline, it seems the government only has a plan to unify and launch a currency competition scheme. Investors are betting on a disorderly exit from the current situation. This could mean devaluation of the official dollar, faster inflation, and more problems for internal activity and consumption.
Growing Dissatisfaction with Current Economic Policies
Some economists and consultants close to the government are unhappy with the plan for the next months. They say currency controls must be lifted soon. They argue that moving the central bank’s liabilities to Treasury bills has no clear purpose and does not change much. More details about this measure are expected this week. The central bank will release more specifics starting this Thursday.
