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Despite the intervention of the Central Bank, the dollar continues to decline



The central bank bought another $ 20 million from the market and confirmed a new sharp fall in the Leliq rate. Nevertheless, the wholesale dollar fell again, this time around 11 cents, and remains below the minimum price of the flotation band.

After a 55-cent leap in the wholesale segment on Tuesday, while the Central Bank left a significant part of Leliq and managed to lower the rate to 56%, this time the US currency started to trade at the levels closest to the floor of the non-intervention area, and even reached a ceiling of $ 37. 80. But soon the price started to deflate, and in order to avoid a greater appreciation of the peso, the monetary authority led by Guido Sandler made another purchase on the market through a public auction. Since then, the BCRA has earned more USD 20 million, so in January and US $ 510 million of its international reserves. To carry out these operations, an economist at Gabriel Caamaño, a consulting firm at Ledesma, estimated the agency had to provide about 19,000 million pesos.

The central bank also tried to give more dollars to Leliq's daily contest. As a result of the placement, the average interest rate was lower than the previous day. On Tuesday it was 55.64%, and on Wednesday it was 54.88%. The fall of the Peso harvest could restore demand for currency.

The retail exchange rate was closed almost unchanged from the previous day. The average CPRA quotes for banks sold on Wednesday were $ 38.58.

Given that the monetary target is overcrowded and the dollar has risen than expected due to inflows from abroad, BCRA expanded its peso supply, leaving nearly $ 75,000 million unchanged this week. Thus, it managed to reduce the reference interest rate by almost one and a half percentage points. Second half: The greater the amount of available pesos, which, for example, increased the price of the currency on Tuesday.


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