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Montevideo, July 20th 2018 - 03:19 UTC

Macri administration relies on dual currency bonds to keep exchange rate stable

Thursday, July 12th 2018 - 02:57 UTC
Full article 2 comments
The Ministry of Finance headed by Nicolás Dujovne said in a statement that dual currency bonds were awarded at a 2.35% monthly interest rate, The Ministry of Finance headed by Nicolás Dujovne said in a statement that dual currency bonds were awarded at a 2.35% monthly interest rate,

Following months of steady devaluation of the Argentine peso against the US dollar, the government of President Mauricio Macri made yet another move Wednesday to stabilise the exchange rate, which nevertheless reversed its downward trend of the past week, rising 14 cents from Tuesday to close at $ 28.19 / US$ 1.

 The Treasury made a combined issuance of 2,152 million dollars of debt, with 1,638 million in dual currency bonds with a maturity of 19 months and 514 million dollars in US dollars at 210 and 378 days.

The Ministry of Finance said in a statement that dual currency bonds (denominated in dollars but paid in Argentine pesos) were awarded at a 2.35% monthly interest rate, and purchase orders were received, worth 2,144 million dollars.

As for Treasury bills in dollars, two issues were made, one at 378 days and an annual nominal yield of 5.50%, of which 294 million of the 297 million requested by investors were awarded.

The other issuance was of 210-day bills and an annual nominal yield of 4%, which received purchase orders for 257 million dollars, of which 220 million were awarded.

The devaluation trend was replicated in other countries of the region. In Brazil, the real went down 1.7%, in Mexico by 0.6% and in Uruguay by 0.3%.

 

Categories: Economy, Politics, Argentina.

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  • chronic

    Teresa H: 30%.

    Posted 5 days ago 0
  • Enrique Massot

    The Argentine government is from now on reduced to attempt moves that cannot and will not solve the deep disbalance that is pushing the country to a financial crisis of large proportions.

    In a nutshell, Argentina has been in the hands of a gang of rapacious business people who in just shy of three years have dismantled the country's domestic productive sector and have burdened the economy with a domestic and foreign debt that pretty soon will become totally unmanageable.

    Contrary to early lies spread by the government, the IMF has an extensive set of conditions to continue lending money, conditions that will liquidate the assets that guarantee the retirees' income and deepen an already ruinous recession.

    Argentina will become, to its disfortune, a showcase for the consequences of applying textbook neoconservative measures in a developing country.

    It will also show the selfishness of wealthy class that, having its assets spread in fiscal havens, has little commitment to the country's progress, as clearly expressed by cabinet members who do not even blink when asked about their offshore accounts.

    A hard lesson for Argentine voters.

    Posted 4 days ago 0
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