End the theory of the dollar: the order is now deactivate

GUILLERMO LABORDA
Chief editor of Economics level. com



• MESSAGES CONFUSED BCRA intervention.
• TODAY, a new attempt of anesthesia.
Central Bank's speech on free float stood aside before the electoral noise. The problem of disguised sales through BAPRO.
Argentine paradox: the d Olar was coming up for election. With each passing day, the number of buyers grew by uncertainty about its outcome. Now for the elections, the government seeks to lower. Mauricio Macri gave the order to anesthetize your quote. Marcos Peña, Mario Quintana and Gustavo Lopetegui noted the noise that was generating the quote. No more free floating of the BCRA. But on Friday the official intervention was not clear: it did through the Banco Provincia and not a few officers thought they were the same sales available to the governor Vidal. Recently with BCRA statement after the close of trading it became clear the rotation of the Government. And the BCRA. It is not the same for the market that the seller is the Banco Provincia be the Central. Wallets are different.

The question now is how the Central Bank will today mark the new exchange order.Will it continue selling camouflaged behind the public banks? It not well understood this strategy that looks more like a desire to preserve unsullied, untainted by selling foreign exchange. Perhaps that camouflage is not to be so trasmano since April 18 last Federico Sturzenegger noted that the BCRA aimed to start accumulating reserves. That day the official predicted a "more aggressive" stance on the accumulation of'divisas. Then they abounded dollars soybeans and Cristina Kirchner had not announced his candidacy in PBA. The problem to do so via public banks like BAPRO is that sometimes do not give credit to all entities of the system. That's why when someone wants to buy, you can not do.

But more relevant than camouflage, it is how and how much will today start the BCRA for sale. The worst that can happen is to sell and not less. On Friday there were already signs of the dollar run. An alternative is to push the exchange rate down and gradually lose money to go shopping in early trading. Message so happen is that "you cross me, you lose." Another alternative is to directly put a sell order by a significant amount and expect sellers flee. It was what made Martín Redrado in its passage by the BCRA. What was clear is that Federico Sturzenegger is economically strong man in the government. He did not leave the Treasury to sell dollars even though he could. There is a "table Macroeconomic Coordination"integrating finance ministers, finance, production and the Cabinet. But the preponderance of Sturzenegger made the "free floating" and minicorrida germs in the last 20 days will be preferred. He was confident that with high rates and currency higher price, sellers appear. They were but few. As it is implemented today the economic management of the government, there is little room for different opinions.The exchange rate is a spring BCRA. Precisely in the coming hours will be known through the publication in the Official Gazette the appointment of new director Enrique Szewach after removal of Pedro Biscay. The three vacant seats will be completed after the election. It would be positive and give strength to the institution,that the board had agreed its mandate by the Senate. The OECD in its multidimensional economic study referred in one of its chapters to the importance of having an independent central bank. But the short-term problem is another today.










Argentine paradox: the d Olar was coming up for election. With each passing day, the number of buyers grew by uncertainty about its outcome. Now for the elections, the government seeks to lower. Mauricio Macri gave the order to anesthetize your quote. Marcos Peña, Mario Quintana and Gustavo Lopetegui noted the noise that was generating the quote. No more free floating of the BCRA. But on Friday the official intervention was not clear: it did through the Banco Provincia and not a few officers thought they were the same sales available to the governor Vidal. Recently with BCRA statement after the close of trading it became clear the rotation of the Government. And the BCRA. It is not the same for the market that the seller is the Banco Provincia be the Central. Wallets are different.

The question now is how the Central Bank will today mark the new exchange order. Will it continue selling camouflaged behind the public banks? It not well understood this strategy that looks more like a desire to preserve unsullied, untainted by selling foreign exchange. Perhaps that camouflage is not to be so trasmano since April 18 last Federico Sturzenegger noted that the BCRA aimed to start accumulating reserves. That day the official predicted a "more aggressive" stance on the accumulation of'divisas. Then they abounded dollars soybeans and Cristina Kirchner had not announced his candidacy in PBA. The problem to do so via public banks like BAPRO is that sometimes do not give credit to all entities of the system. That's why when someone wants to buy, you can not do.

But more relevant than camouflage, it is how and how much will today start the BCRA for sale. The worst that can happen is to sell and not less. On Friday there were already signs of the dollar run. An alternative is to push the exchange rate down and gradually lose money to go shopping in early trading. Message so happen is that "you cross me, you lose." Another alternative is to directly put a sell order by a significant amount and expect sellers flee. It was what made Martín Redrado in its passage by the BCRA. What was clear is that Federico Sturzenegger is economically strong man in the government. He did not leave the Treasury to sell dollars even though he could. There is a "table Macroeconomic Coordination" integrating finance ministers, finance, production and the Cabinet. But the preponderance of Sturzenegger made the "free floating" and minicorrida germs in the last 20 days will be preferred. He was confident that with high rates and currency higher price, sellers appear. They were but few. As it is implemented today the economic management of the government, there is little room for different opinions. The exchange rate is a spring BCRA. Precisely in the coming hours will be known through the publication in the Official Gazette the appointment of new director Enrique Szewach after removal of Pedro Biscay. The three vacant seats will be completed after the election. It would be positive and give strength to the institution, that the board had agreed its mandate by the Senate. The OECD in its multidimensional economic study referred in one of its chapters to the importance of having an independent central bank. But the short-term problem is another today.