Weekly

Weekly Reports

The official exchange rate devaluation pace accelerated

Fourth week
of July 2013
The official exchange rate reached AR$ 5.46 to the dollar on Friday, bringing the yearly devaluation rate to 19.8%, compared to 18.7% last month. The yearly devaluation pace in the last 60 days accelerated to 28.7%, the highest since 2009 In the last weeks, the Central Bank continued to accelerate the devaluation ...

More of the same: the monetary expansion continues to ease and interest rates are on the rise

Second week
of July 2013
In line with the trend since March, the monetary expansion eased once again in June, growing 31.5% per year, well below May (34.6%) and February (39.9%); the expansion in private M2 also continued to decelerate to 30.2%. Private sector deposits in pesos grew AR$ 12.3 billion (3.0% m/m), the largest rise this year, a...

The devaluation rate accelerates and interest rates are on the rise

First week
of July 2013
The reference exchange rate devaluated 10.15 cents in June, or 1.9% and ended the month at AR$ 5.385. The y/y devaluation rate accelerated 0.8 percentage points to 19.0%, the greatest y/y devaluation since 2009. Interest rates for deposits in pesos continued to rise, in line with the contraction in liquidity in th...

Farmers liquidate agricultural exports, but the Central Bank is not buying foreign currency

Fourth week
of June 2013
Grain and oilseed proceeds this year were US$ 12.2 billion, according to the latest available information in CIARA. They were slightly higher than the US$ 11.2 billion in the same period in 2012. Thus, export liquidations grew US$ 976 million, or 8.7%. Meanwhile, Central Bank foreign currency purchases were US$ 1....

Despite the official rhetoric, the Government took measures to reduce the parallel dollar

Third week
of May 2013
Contrary to the government’s official rhetoric, which constantly downplays the parallel dollar’s role in the economy, it seems to have noticed that a significant exchange rate spread –around 100% - inevitably affects economic activity and investment. The reduction in the blue-chip dollar was the result of an incre...

The monetary contraction this year is not enough

First week
of May 2013
The monetary base usually contracts in the first months of the year after the strong expansion that usually occurs in December. Thus, in the first four months, the monetary base contracted AR$ 20.5 billion, or 6.7% relative to December 2012. This contraction is significantly stronger than in 2012, when the monetary ...