The Argentine government added new restrictions on Monday to operate with the so-called financial dollars, cash with liqui or CCL, and the MEP, and avoid the outflow of reserves from the Central Bank
The measure was announced on May 1 and will take effect on Tuesday. As pointed out by the Ministry of Economy, headed by Sergio Massa, the consensus of the main stockbrokers was obtained.
New provisions on negotiable securities transactions with settlement in foreign currencyhttps://t.co/6cLrr1Wa9J pic.twitter.com/CvKOYH625q
— CNV Argentina (@CNVArgentina) May 1, 2023
The means to access financial dollars:
1) Seeks that Stock Brokers (Settlement and Clearing Agents (ALyCs) and Negotiation Agents) may not proceed or settle sales operations of negotiable securities with settlement in foreign currency to clients who have positions taking in sureties and/or passes, regardless of the settlement currency.
2) Establish limits to the portfolios of the ALyCs in terms of the number of marketable securities sold with respect to the number of marketable securities purchased -with settlement in foreign currency and in local or foreign jurisdiction-, carried out in the segment of concurrency of offers , with priority price time.
“The idea is to avoid the use of the bond round to finance the purchase of titles to be later settled in foreign currency, as was observed during the last rounds. Meanwhile, order the participation of the ALyCs in the liquidation of titles both in pesos and in US dollars through establishing a netting of daily operations for their own portfolios, a measure that has already been in force in recent years, but this time with scope for foreign law as well as local law dollar titles”, they pointed out from the Argentine portfolio to The Observer.
They also highlighted that “Both measures do not affect individuals or legal entities that genuinely need or wish to use the stock market to liquidate dollarized assets.”
The new restrictions seek to stop the drain of dollars in a market that has been more volatile in recent weeks with the escalation of the CCL, MEP and the blue dollars. After touching the almost 500 Argentine pesos The Argentine Central Bank began to intervene in the market and brought with it the increase in demand for the CCL and one of the reasons that reflected this was the increase in sureties.
At the same time, Massa seeks to renegotiate the agreement with the IMF, especially the items of the international organization to strengthen the reserves and, as plan B, advances in an agreement with China to expand the SWAP.
(With information from The Chronicler)
