Sturzenegger uses the greenbacks he bought from the treasury at the beginning of the year worth $ 19.43 and now he releases them at $ 20.23 on average. So you get a positive result for the price difference between purchase and subsequent sales. Thus, the company's balance sheet improves, they say.
Buying cheap and selling expensive is ABC for good investors. And while the data goes unnoticed because of what is happening on the stock exchange, The Central Bank is also a faithful exponent of this maxim.
This is because, although the central bank is selling dollars to lower the temperature to the dollar it is not only effective for controlling the exchange rate, it provides a "profit" for the company.
How is this? The data comes from to see what price Federico Sturzenegger bought dollars and what value he sells them . This account shows that the monetary authority for its efforts "earns" about $ 1
" These transactions (selling dollars) are made at prices that generate positive results deriving from the difference. Of the prices between the purchase and subsequent sales and thereby improve the balance sheet ", explained by Federico Sturzeneggers environment.
The operational sequence performed by the central office is as follows:
-between January and February the central bank purchased U $ S8000 million from the Treasury ] at an average price (according to Central data ) on $ 19.43
– From the beginning selling dollars to stop stamped by the bill to beginning March and even released 2, 42 billion US $ 19459007 at an average exchange rate of $ 20.23
– this way the price difference between buying and selling of the greenbacks he now used to interfere results in a "profit" at $ 1,940 million
In addition, the fact that they could have added these "cheap" dollars "at that time helped them invest them to generate profits. The central government explained that because the country has The debt left has a investment policy of its reserves much more active than before, which allows you to channel some of these assets into international markets in search of greater profits.
The hot month for the interventions of BCRA on the stock market was March . During that month, and after accepting a 17 per cent depreciation of the peso since December, the strongest investment in the agency was reducing the foam to the dollar's rise, which in the wholesale circle flirted with the 20 dollar ceiling was concentrated. , 45
– only in March, the Central Bank divested USD 2,040 million, resulting in an average sale of 100 million US dollars per day and intervened in ] 14 of the 20 days that month had, according to calculations by Econviews.
-The maximum quote for dollars was $ 20.44 and later the central government does not let the currency exceed that level, which ended last month at $ 20.14, depreciates only 0, 1%.
-Regarding of the multilateral real exchange rate resolved by BCRA, it had depreciated 13% from December to the beginning of the intervention.
-In March, was estimated at 2.3% and returned to the January records . So far this year, 4.2% has been depreciated and compared with the increase in the exchange rate, only 6% was below.
"The Exchange Intervention for the past few weeks then fulfills several functions: it consolidates a quasi-tax gain, breaks expectations of depreciation and inflation and allows [monetära myndigheten] to point out that its vision of future monetary policy differs from the market "last week explained Sturzenegger during his dissertation at ExpoEFI.
The number of BCRAs added that when these expectations are aligned with BCRA's arbitration opportunities for the monetary authority will be lowered and the exchange rate floats as it has done in the past two years.
"In short, what the Central Bank has done is compensating for a nominal depreciation driven by our understanding of the expectation of a nominal shock that does not find any correlation in the monetary authority's vision," he concluded.
While the center's intervention rhythm is new, it has now also sold dollars in two of the four workwheels this month, the truth is that some of this has already been tested last year in spasmodic form .
In the analysis of the year 2017 there were three specific moments where he actively participated in the stock market.
-Two days of intervention in March, where they bought the dollars produced by the issue of debt of the province of Buenos Aires for a sum of u $ s600 million.
– Purchase of you $ s1.100 million ] at the beginning of May is performed along eleven consecutive wheels within the framework of the announcement of the monetary authority to accumulate reserves until they reach a reservation / GDP ratio of 15%. This process was interrupted by a political crisis in Brazil.
– Sales of $ 1.800 million between the end of July and early August when the volatility of change was increased in the wheels before Open, Simultaneous and Obligatory Primary (STEP) which took place August 13th, and did not go back to work from this active venture until it apparently this year
] The current strategy, although it generates some concern about the volume of dollars sold in such a short time, has a positive page for the money table run by Agustín Collazo and Demian Reidel in the center.
"It's interesting in terms of driving BCRA not only because it sells expensive now, but because of the trend, since dollars of debt and soybean emissions will recover as will be able to buy and then sell more when the soy effect is liquid. Given the context they do the job well, they say from a foreign bank operating in Argentina.