Dollar effect: investments go to real estate and bonds in pesos

The currency is more inclined towards the downside than the upside, in the short term. The closeness of the end of the month threatens its price. They remain to liquidate about USD 10 billion of the crops.

The market knows all these data and continues betting on investments in pesos. In fact, there is a strong expectation for what will happen in the upcoming Lebac tender.

Knowing that the election in the province of Buenos Aires ended with a more than adjusted difference between Kirchnerism and Cambiemos encouraged to take risk because investors discount that in October there are no risks for the ruling party.

The difference with the recent past is that all movements in dollars and pesos are not violent. There is no volatility. The caution premium in the Stock Exchange, the bonds and the real estate market. Although the Merval of the leading stocks rises daily, it does so in a moderate manner.

In the exchange place, the movement is not different. The dollar to the public, which is sold in banks and exchange houses, remained at $ 17.49, while in the marginal square the “blue” closed at $ 18.31, in that case increased three cents from the close of Friday .

The difference with the recent past is that all movements in dollars and pesos are not violent. No volatility
The dollar “today”, which is traded between banks, operated USD 437 million, a relatively moderate amount. The market opened with positions of $ 17,245 seller, but at 10.50 was made the first operation at $ 17.22. It soon recovered and ended at $ 17,235 per unit, 1.5 cents above Friday.

In contrast, the dollar used to settle foreign trade operations, lost less than a cent, closed at $ 17.2155, the Central Bank of Argentina reported.

In the futures market, with few transactions, prices closed lower for most of the terms: 0.32% at the end of the month, which ended at $ 17.27 and 0.14% at the end of January, at 18 , 82 pesos.

Reserves grew by USD 357 million to USD 49,379 million. The only change in the composition of reserves is that the Central Bank bought the USD 600 million from the Treasury, but those currencies were already within the reserves because they were part of the Treasury account in the entity. Now that dollars became free reserves and the Treasury was made of pesos. On the other hand, the Central won USD 98 million by the rise of the euro in foreign markets. The only payment made was USD 9 million to Brazil.

There was a change in the composition of the reserves because the Central Bank bought from the Treasury USD 600 million that were in their accounts to cover needs of pesos
In the debt bond market, a moderate volume of $ 7,677 million was traded. Bonar 2024, the reference dollar denomination that has Argentine law, almost had no changes because it rose only 0.08%. The most outstanding was the Treasury Bond in pesos that expires in 2018 which increased 0.27 percent.

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