Hunting for Reserves

The Central Bank was a net seller in the FX market for seven consecutive rounds until last Thursday. Not only are we at the time of year when reserves should be accumulated, but a preferential exchange rate is also in effect so that soybean and sunflower producers and a series of regional economies can liquidate at 300 pesos per dollar. It is obvious that the drought is a problem. But, in any case, it is also clear that exporters are not enthusiastic about the additional pesos that the government has put on the table. Although the premium goes down as time goes by, the value of the prize is not very different from previous editions, which helped the Central Bank recover reserves.