Surprise VPs: what does it mean for the economy?

Informes Mensuales


Volver a

Volver a : 

Surprise VPs: what does it mean for the economy?

Junio 2019

May was a positive month regarding the FX front after the CB announced on April 29th that is allowed to intervene in the FX market discretionally and the Peso reacted positively: it fluctuated around 45.00 ARS/USD since then, even when other emerging-market currencies were depreciating. So far, the monetary entity did not sell international reserves. However, the Treasury continued to sell USD 60 million per day and the proceeds from the grain and oilseed sector helped to stabilize the currency.

Moreover, the recent Government’s decision of choosing Miguel Angel Pichetto as vice president candidate was celebrated by the market, with a nominal FX appreciation of the Peso to 44, a slump in country risk premium to 845 (EMBI+) and equities soaring 5% and reaching a historical maximum.