Dollar Purchases Returned, but Reserves Did Not

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Dollar Purchases Returned, but Reserves Did Not

Third week
May 2023

The measures launched by the government at the beginning of last week do not have the magnitude to change the course of events. To a large extent, it was staged to show the market that the government is at work. Neither we nor any of our colleagues that we know of have lowered their inflation estimate for the coming months. No one believes that importing food will have any effect. And what’s more, food will probably not be imported. The Trade Traceability Unit probably will not control anything either, but the Soviet name doesn't help build credibility. The rate hike is more ambiguous, but they didn't have many other alternatives after last Friday's 8.4% surprise.