June 9, 2023

Brighton Journal

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The government imposed new restrictions on access to financial dollars

Sergio Massa (REUTERS/Matias Baglietto)

Among the intervention strategy in the financial dollars ordered by the Minister of Economy Sergio Massa Last week, and with the aim of impacting free trade, the government created new rules for access to stock exchange rates, Liquid or cash with CCLAnd MEP And Avoid financial transactions with guarantees This increases the level of demand for foreign exchange.

This is a move that does not affect savers, and Massa and the National Securities Commission agreed with institutions in the financial sector, such as the stock exchange, like BYMA. “Political instability and speculation that the four are alive will work and not jeopardize the occupation,” Massa said. infobae Yesterday. The minister promised that this system of controlling the dollar would characterize his administration and continue during his tenure. Days earlier and after the free price peaked last Tuesday at 497 pesos, the alternative dollar fell 6 percent.

“People who want to buy apartments have nothing to do with speculators. We don’t want to block CCL and MEP” (Negri)

“The idea is to correct the two distortions that have occurred in recent days as a result of the increase in the volume traded in so-called financial dollars and the volatility of their prices. It has nothing to do with those who want to buy apartments and speculators. We do not want to block CCL and MEP,” he said. Infobay Sebastian Negri, president of the CNV. Today made the new plan official with Resolution 959.

Sebastián Negri, with BIMA executives, told CNV last week
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“The aim is to avoid the use of the bond wheel to finance the purchase of titles settled in foreign currency later, as has been practiced in recent days. And order the participation of ALyCs [Agente de Liquidación y Compensación, o casas de bolsa] By establishing a network of daily operations for their own portfolios, in settling titles in both pesos and dollars, Negri explained.

The move was agreed at a meeting held by Negri last week, amid regular meetings with the department. Gonzalo Pascual And George DeCarly, CEO and General Manager; and with Mathias Issa And Rodolfo IriberanDirector and General Coordinator of CNV.

In recent days, when BCRA started to intervene, the demand for CCL increased, and one of the reasons that reflected this was the increase in sureties, put up as a guarantee in return for a round of financing. Therefore, on days of maximum stress, guaranteed rates can be as high as 20% in dollars annually. now, The new rule marks the end of the use of paper and guaranteed access to financial dollars, requiring operators to deposit cash.

Thus, there are two activities for which the application will start from Tuesday after the holiday on 1st May.

1 – “ALyCs and negotiation agents are required not to pursue or settle sales activities of securities negotiated by settlement in a foreign currency to clients who have taken positions in collateral and/or repos, regardless of the settlement currency.”

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2 – “Establishing limits for ALyCs’ portfolios based on the number of marketable bonds sold depending on the number of marketable bonds purchased, settlement in foreign currency and local or foreign jurisdiction. Offers, with price time priority”.

“A Merchant BCRA intervenes in your activity screen and sells to reduce the price. So you put your bonds on the guarantee wheel to buy those dollars and increase real demand. So, on a typical round of CCL and MEP, USD 100 million per day, for example, doubles the demand. They are opportunistic activities that arbitrage to make quick profits,” explained the market.

As for point two of the new resolution, now brokerage firms can buy and sell with their funds, but they must be “net” at the end of the wheel. As explained in the CNV, this is a move that was in effect until a few months ago for bonds with local law, and will return to those with US law, such as global bonds, which are now used more to create a CCL.

The CCL creates a balance resulting from dividing a financial asset’s price in pesos by its price in dollars and allows funds to be credited to an account in another country. It is a formal and legal dollar, meaning that they are declared operations, and the price variation of the implicit dollar depends on the asset used for the operation. For example, the dollar is “calculated with liquid” or with cable Actions Now running in the range of 441 coins.

Like liquid, the MEP or stock market dollar arises from the balance between the prices in pesos and dollars of the same financial asset, but in this case, the currencies are credited to an account in the local financial system, therefore, , it is slightly cheaper than the cable.

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The most widely used bond to form the MEP is the AL30, which yields one dollar 437 cents. Executes the call to these functions “Parking” is the number of days an investor must hold purchased securities in his portfolio before selling them.

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