Dollar between bands, day 2: the exchange rate seeks balance, compresses the gap and pops out the “carry trade”

As we mentioned on several occasions, the exchange rate scheme with 1% of monthly crawling was unsustainable. The difficulties in finding new “bridges” of dollars to sustain appreciation (derived from the government’s own anti-inflationary strategy with exchange anchor and fiscal choice) implies the end of the crawling cost of a leap in price level. The agreement with [...] The entry CEPA: New IMF loan: exchange rate scheme and expectations was …

The Central contends that "these investments will require a period of stay of 6 months, which must be verified by the financial institution that concretizes the income operation".

Economists highlight the "calm" of the operation, and warn for a renewed "carry trade" because the rates in pesos are above the implicit rates of the future dollar.

On Monday, April 14, we asked ourselves some questions about how many exchange rates will remain? What will change in our daily lives from today? What will happen to prices? What dollar should you buy? What will happen tomorrow with the dollar? And what will happen to prices? On Friday they made two important announcements: on the one hand at the end of the exchange rate, on the other hand, a new regime. News Argentinas communicated with Dr. Lau…

The economic analyst said on Radio 10 that the opening of the exchange rate system will be "better" for the economy, but will not avoid a new wave of price rises. During an interview with the Tomorrow Sylvestre program of Radio 10, financial analyst Christian Buteler analyzed the scope of the new exchange rate scheme promoted by the government, which establishes a floating band for the official dollar and a relative flexibility of the quota.

The new currency flotation scheme puts pressure on prices. Consultants foresee an inflation rate similar to or higher than that of March. The post Economists after the release of the currency quota to the dollar: «this currency jump could add pressure to prices» appeared first on The Intransigent.