In May, individuals acquired $ 534 million, practically double that of April. Concern about the level of reserves of the Central Bank
The restrictions on the purchase of dollars and the continuous advance in its official price were not enough in May to quell the greed for dollars of private savers in the month of May.
This was revealed by the Central Bank in a report released this Friday, detailing that foreign currency purchases made by human beings doubled in amount compared to April.
The “human persons”, who basically buy foreign currency for hoarding, travel and other consumption abroad, bought net u $ s534 million ($ 438 million for tickets and about $ 83 million for travel and other card expenses). From the monetary authority, they indicate that dollar purchases fell 81% year-on-year (compared to May 2019), given the context of border closings.
However, the comparison is not at all positive for the Government if it is done with April 2020. In that month, natural persons were made of only $ 248 million, whereas in March they had only acquired $ 174 million. That is the hunger for the dollar has been growing in the minds of the Argentines, wrapped today in a context of economic and health uncertainty.
The average purchase per capita by human beings was US $ 190, slightly below the allowed monthly quota of US $ 200. the number of individuals who chose to acquire dollars was double in May than in April, jumping from 1.2 million to 2.4 million people, according to the official report.
According to the Central report, clients of financial entities (aggregate that includes individuals, companies and other bank entities) bought in May $ 755 million in the exchange market, which were covered by net sales of the BCRA and entities by u $ s679 million and u $ s76 million, respectively.
The US $ 200 limit was not reached to avoid further dollarization of individuals.
Indentation of dollar reserves
During May, the BCRA’s international reserves decreased by US $ 980 million, ending the month with a stock of US $ 42,588 million.
The BCRA highlighted that from the effective date of Communication “A” 7030, which strengthened the exchange rate for companies, a reversal was generated in the result of the operations of clients of entities, a situation that allowed the BCRA to accumulate international reserves in the following weeks, beginning with net purchases of US $ 279 million during the last day of May.
The companies in the real sector were net sellers of foreign currency for US $ 23 million. Within this group, the main sector in terms of historical net sales, “Oilseeds and cereals”, had net sales of US $ 1,709 million, with a year-on-year drop of 37%.
During last November and December, the sector netted US $ 4.6 billion (84% year-on-year rise, basically due to the higher income from advances and pre-financing from abroad, whose debt stock has been paying off during 2020), and that the external sales records (which define the payment of export duties) of all 2019 were above the exports of the year by about $ 8.5 billion.
Meanwhile, the companies of the “Real Sector excluding Oilseeds and Cereals” made net purchases of US $ 1,685 million, mainly to make payments for imports of goods and services. This level of net purchases for the sector was not observed since August 2019.
The “institutional investors and others”, both residents and non-residents, made net purchases in the month for $ 12 million.
The exchange current account, which comprises the net result of exchange operations registered as net exports of goods and services, and primary and secondary income in line with the definitions of the Balance of Payments, registered a deficit of USD 322 million.
On the other hand, the financial account of the “Non-Financial Private Sector” had a deficit of US $ 739 million in May, as a consequence of net cancellations of financial debt and the formation of external assets, partially offset by income linked to investments direct.
In addition, the operations of the foreign exchange financial account of the “Financial Sector” were in surplus of US $ 877 million, explained by the decrease in the liquid external assets of the entities that make up the General Exchange Position (PGC), partially offset by cancellations of financial loans and lines of credit.
Lastly, the operations of the foreign exchange financial account of the General Government and BCRA recorded a net outflow of funds of US $ 4 million, which was basically explained by the net cancellation of financial debt through the use of funds that were previously deposited (” swaps “) and the local liquidation of funds that were in foreign currency.
The price of the dollar continues to rise
In the local exchange market, the blue dollar rose this Friday to $ 129 and set a new record, while the wholesaler ended the week on the rise, to $ 70.22 and the stock prices fell.
The US currency in the informal circuit of the city added $ 1 compared to Thursday after going through most of the stable day.
Thus, throughout the week, he experienced an advance of $ 2 amid limited activity in the “caves” of Buenos Aires.
In the wholesale sector, the ticket added six cents and reached $ 70.22 per unit, which compared to the previous Friday recorded an increase of 42 cents.
The volume traded in the cash segment grew slightly to US $ 220,101 million.
According to market sources, the Central Bank would have acquired about $ 50 million.
The cash with liquidation traded with a negative trend and ended at $ 105.54, with which it lost more than $ 3.5 in the last five sessions.
Along these lines, the dollar exchange rate fell to $ 102.3 and experienced a drop of over $ 6 compared to last Friday.
The retail dollar, meanwhile, was offered at an average of $ 73.55.
If the 30 percent surcharge corresponding to the Country Tax is added to this, the value amounts to $ 95.61, three cents more than Thursday.
In turn, throughout the week, the so-called “tourist” dollar accumulated an advance of 61 cents.
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