Braking the “roller” and saving reserves: the government’s financial strategy behind the blow to the Mep dollar

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One month before the primary elections, the Government is determined to take care of the dollars of the central bank (BCRA) and avoid a jump in the official exchange rate that could cloud the electoral chances of the Frente de Todos. To do this, he resorts to direct interventions in financial exchange rates, but also adds regulations in the market, which seek to complicate financial operations.

In parallel, the Government’s intention is incentivize the market in pesos, even with inflation that has not ceased and whose interannual rate remains above 50%. The three keys to a financial plan looking to get to November.

Concern about reservations

During the months of high seasonality in the dollar settlements On the part of the agro-exporters -April, May and June- the BCRA bought a good part of these currencies in the market and used them to intervene on cash with settlement through the purchase of bonds in dollars.

As agricultural foreign exchange…

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