The official dollar deepened the downward trend that it registered in the last rounds by ending at $1,355 for sale and $1,305 for purchase at Banco Nación (BNA), which implied a drop of five units compared to the previous day. During the morning of this Thursday, the US currency was offered at $1,345.
According to data from the Central Bank (BCRA), in the average of financial entities the retail ticket ended at $1,354.03 for sale, with a drop of $13.92 or 1%, and $1,305.05 for purchase.
In the wholesale segment, the exchange rate closed at $1,337, just 50 cents below Wednesday. In the first hours of the day the official dollar hit a floor of $1,318.
For its part, the “blue” dollar registered a rise of five pesos or 0.4% on the day and closed at $1,410 for sale, after having traded at a minimum of $1,395 during the morning.
The Central Bank deepens the reduction in rates driven by international support and the income of foreign currency from agriculture
With the support of the United States and a record flow of dollars from the agricultural sector, the national government consolidates a strategy to stabilize the exchange market. The Central Bank (BCRA) accelerated the pace of reduction of short-term interest rates, taking them to 25%, while the dollar fell to levels prior to the legislative elections in the Province of Buenos Aires.
While global attention was focused on US economic policy, the BCRA took a significant step towards normalizing the local economy. During the day on Wednesday, the monetary authority cut short-term interest rates by 10 percentage points, placing them at 25%.
This measure directly impacted the exchange rate, which fell below $1,350, recovering values prior to the Buenos Aires legislative elections.
The reduction in rates was materialized through a decrease in the BCRA’s taking position in one-day passive repos in the simultaneous BYMA rounds. This movement generated a cascade effect, also cutting the returns of other short-term instruments, such as bonds, whose daily yield fell to 22%.
It is worth remembering that these return rates had reached peaks close to 80% at the beginning of the month, in a context marked by strong financial volatility and growing pressure on the exchange rate. The current level is more aligned with the average prior to the disarmament of Liquidity Letters (Leliqs).
According to a report by the consulting firm 1816, the Government could be capitalizing on the favorable change in market conditions, driven by the United States’ support for the economic program of the libertarian administration, to continue reducing interest rates (which are already below the 29% that the Leliqs offered) or to contain, and even lower, the price of the spot dollar.