In a new bet to try to decompress the exchange pressure, the Government made $ 254,671 million in exchange for debt issuance, thereby reducing the need for monetary issuance from the Central Bank, it was officially highlighted.
It was an important test in the market, after the escalation of financial dollars in recent weeks (appeased in recent days with official interventions).
The $ 254,671 million was obtained through the bidding of five instruments, which had a participation of the public sector less than 20%, according to Clarín. But the one that captured the most appetite from the market was the bond tied to the official dollar, which is an 18-month security, maturing on April 29, 2022.
With that title, the Ministry of Economy received $ 129,804 million, just over half of the resources that emerged from the tender on Tuesday. It is an amount equivalent to US $ 1.66 billion, it was specified in a statement. It also emerged from the tender that this title will pay an annual rate of 0.10%. That rate suggests that investors are content to hedge against the depreciation of the peso that occurs in the next year and a half.
This “dollar linked” is the second that was tendered in the management of Alberto Fernández. Although in Martín Guzmán’s environment there was a certain reluctance to issue an instrument tied to the dollar, the high expectations of devaluation that were infected in recent weeks, with an exchange gap that flirted with 140%, made progress on this type of auctions .
In the previous tender for the other bond tied to the dollar, the Government made $ 136,000 million. Thus, in October the Ministry of Finance obtained funds for $ 420,583 million (in addition to another tender for securities in pesos) that “allow the end of the month with a positive net financing of approximately $ 250,000 million, which represents a refinancing ratio of maturities (roll-over) of 246%, the highest of the year ”, it was highlighted in a statement.
They also emphasize that, with these resources obtained in the market, “the monetary assistance provided by the Central Bank in the framework of the pandemic will be reduced.” That is why it was reported that the Treasury “will make an early cancellation request this week. of temporary advances of the BCRA for a total of $ 100,000 million, which add to the cancellations already made in October for about $ 26,000 million ”.
In a signal to the market that was very volatile and negative in recent weeks, with increases in cash with liquidation and the MEP, and also with the fall in the prices of the new exchange bonds of 30% on average, Guzmán seeks transmit moderation in the monetary issue.
As it was officially detailed, this week $ 108.7 billion will expire. According to Juan Ignacio Paolicchi, from EcoGo, with the market the total to be paid was about $ 97,000 million (the rest was with the public sector itself).
Paolicchi estimates that in the remainder of the year there will be $ 525,000 million in peso debt with the private sector. November is the heaviest month of the two remaining, with a total to be faced of $ 263,000 million, which would already be almost covered.
Regarding the tender, this economist warned that “indexed debt is being issued; if then there are no fiscal signals and the devaluation is not ordered, it will have to issue many pesos that are being issued today. It is a risk that must be taken in mind, even when it is for the long term. ”
Lorena Giorgio, from Econviews, mentioned that “the Government bought some time, decompressed the Rofex (future market) a bit, and covered part of the financial needs of the last two months of the year. However, it is still far from solving the problem in the background, which is the monetary-financial inconsistency and the collapse of confidence. ”
Last week Martín Guzmán announced that they were reviewing the financing estimates for next year that they had included in the 2021 Budget.
What is foreseen in the official project, which this Wednesday would have approval in the Deputies to begin to be dealt with in the Senate, is that 40% be covered with public debt and 60% with BCRA issuance, percentages that are now sought to be reversed, even if it is partially.
After yesterday’s statements by Alberto Fernández, in which he once again assures that there will be no devaluation, the president admitted today that there were interventions in the bond market that is used to make dollars known as cash with settlement (CCL).
“We intervene on the CCL so that they understand that they cannot do what they want. If we have to intervene again, we will do it, “he admitted in an interview with Radio 10.