Argentine President Mauricio Macri Tuesday said Argentines should not worry about the dollar, as the US currency rose 13 cents, closing at AR$ 17.18. It will benefit regional economies and job creation, he added during a radio interview.
Macri also said that fluctuations in the exchange rate are part of the supply and demand flows and that, contrary to being a concern, it is a benefit.
The Central Bank has plenty of reserves, a lot more than we had 18 months ago when we only had negative reserves, Macri added. Tens of billions of dollars are said to be in the treasury, so Argentines should not worry about the dollar, he told Cadena 3 radio of Cordoba.
The US dollar kept its upward trend, closing at an average rate of AR$ 16.74 (buy) / AR$ 17.18 (sale), according to Argentina's Central Bank. Foreign currency traders warned that Tuesday's action had been relatively calm due to the Fourth Of July Independence Day holiday in the United States and that only US $ 190.7 million were traded.
In the Rofex futures market, US $ 267 million were traded, 60% of which was in July roll-over at $ 17.14 and at August at $ 17.39. The longest run was October at $ 17.94 with an implicit rate of 18.30% annual rate.
Cabinet Chief Marcos Peña said on Tuesday morning that the rise in the dollar is part of a predictable and possible situation, and said that the oscillation in the price is performing in a context of normalcy and tranquility.
Peña also explained that since December 10, 2015 we have a floating exchange market, which is very important because it just gives the currency flexibility in the face of the variations that may occur.
He also acknowledged that there are different visions and pressures, with those who believe that the dollar is behind and that, in order to encourage production and exports and the competitiveness of our economies, it has to be allowed to rise and on the other end of the questions there are those who believe not.
Economists now estimate that the US dollar will reach the AR$ 18.50 rate by the end of the year.