Weekly Reports

Is there any advantage to swapping Lebacs for Letes?

Second week
of June 2018
For some time there has been great concern regarding the Lebacs’ stock and there were those who thought that a way of solving the issue was a voluntary “swap” of Lebacs for Treasury bonds and bills. This idea was finally embodied in the program with the IMF. The question is whether this is in fact the best solution ...

What to expect from the agreement with the IMF

First week
of June 2018
The Argentine government and the IMF continue to advance in the negotiations to enable our country to access a program under the Stand-By Arrangement (SBA) framework. In our opinion, the letter of intent would be signed this same week. The effects of the agreement on the different variables will depend on the size o...

The instability in the FX market is still there

Third week
of May 2018
Despite the measures announced and implemented over the last few weeks, the FX market cannot find its new equilibrium. First came the return of the interventions in the spot FX market by the end of April to tame May’s inflation. Then the Central Bank hiked in interest rates (1.250 accumulated basis points) and impo...

Real wages grow, but it doesn't feel that way

Fourth week
of April 2018
Real wages are slightly higher than year ago. Nonetheless, social mood does not seem to have picked up on this improvement. In April, the Public Trust in Government fell 10% compared to March, the second highest fall after December 2017. Trust is 20% below the levels from one year ago and it is the lowest record sin...

Intervention does not mean Cancelation of an Inflation Target regime

Second week
of March 2018
One of the main constituents of inflation targeting is the free floating of the exchange rate. The general rule is that the Central Bank does not intervene in supply or demand of dollars by the private sector and lets the FX price to be set in the market without its participation. Nonetheless, the Central Bank...