As the blue dollar rises once again, financial markets show a slight rebound. The exchange rate on the street is at $1,295 compared to Friday’s $1,245, while in the stock market, The MEP dollar advances 0.5% to $1,250.93 and the CCL barely rises 0.1% to exceed $1,268. Despite this positive news for the Government, investors are closely watching political and economic signals that it can provide in the coming days to offer more certainty about the direction of Javier Milei’s administration.
The approval of the staff report with the IMF on Monday was received as good news in the market. However, no signs have been seen yet regarding the arrival of “cool funds” from the organization, which is crucial in advancing the Government’s plan to stabilize the exchange rate. In this context, investors are closely monitoring international reserves after a drop of US$ 133 million last week.
The Central Bank’s interventions in the exchange market are reducing, and while some believe it is due to lower agricultural liquidation, others think it is a result of a normalization of payment scheme for importers. On Monday, the Government reiterated its exchange rate scheme by confirming a monthly devaluation of 2% and maintaining a dollar blend of 80/20 for exporters.
The focus now shifts to dismantling the exchange rate trap and implementing Caputo’s promise to reduce Country Tax if Bases Law is approved.
Investors are closely watching YPF listed stocks on Wall Street operating positively but local market’s Merval index falls by 0.2%. Investors are focusing their attention on legislative elections in 2025 when significant changes will occur as proposed by Martin Polo of Cohen stated that structural reforms proposed by Milei’s Executive will be challenging until then.
Financial markets show a slight rebound while The blue dollar rises again at start of an unusually short business week.
