The measure is in force as of this Friday, as are other obstacles to operating with dollars. Its objective is to further limit the outflow of foreign currency
By iProfessional
12/05/2023 – 15,25hs
The Central Bank limited the possibility of buying gift cards or “gift cards” in foreign businesses, in order to further limit the outflow of foreign currency.
The measure has been in force since this Friday and was formalized through Communication “A” 7766 from the monetary authority, which at the same time sets other obstacles to operating with dollars and thus preventing reserves from continuing to fall.
Thus, The agency incorporated “the acquisition of gift cards or equivalents from stores or premises located abroad” to operations that require prior authorization to make payments abroad for the use of credit, purchase, debit or prepaid cards issued in the country.
Consequently, the use of “gift cards” is now subject to the authorization of the Central Bank, as is also the case with participation in games of chance and bets of different types, the transfer of funds to accounts in virtual wallets, the transfer of funds to investment accounts in investment managers located abroad, carrying out foreign exchange operations, the purchase of crypto assets, the acquisition of jewelry, precious stones and precious metals.
Central Bank continues to expand the stocks
On the other hand, the Central Bank expanded the importer stocks To access stock dollarswhich are cash with settlement and the Stock Market or MEP.
Access to these exchange rates was prohibited for economic groups and their managers, but now related companies have joined even if they do not have share control.
The Central Bank expanded the import stocks to access stock dollars
According to the provisions, the exceptions that allowed advance payments abroad must now have “zero” in the term of access to the exchange market.
Meanwhile, the restriction that prevents access to the market for having operated with liquidation or MEP in the days prior to the request is extended to 180 days, defined the Central Bank.
Does the Central Bank come out of the exchange rate delay?
The Central Bank is accelerating the rhythm of daily devaluations of the official dollar at a level of 0.26%, which is equivalent to 8% per month. Thus, at the beginning of May, the Multilateral Real Exchange Rate index was at the highest level for almost a year, marking 97.7 points. This implies that if the trend continues in the coming weeks, the exchange rate arising from trade with the 12 main Argentine trading partners will enter positive territory.
What does this mean? The ITCRM of the BCRA indicates if the prices of the Argentine economy are competitive with respect to the markets with which there is more exchange. When it is at 100 points, it means that it is in equilibrium. If it is below, it means that there is a delay, which hurts exporters. And if it is located above, it indicates that the prices of the Argentine exportable supply are more competitive than that of its partners.
Former President Mauricio Macri left his successor Alberto Fernández a very competitive exchange rate. When the command pass took place, on December 10, 2019, it was at 124 points. With this, Alberto Fernández played for a time to use the dollar as an inflationary anchor and began to delay the exchange rate, taking advantage of the fact that it was devalued. On March 12, 2022, he reached a balance of 100 points. And from that moment he entered backward ground, but with a particularity. After having depressed as much as 10 points since the beginning of 2023, the Central Bank maintains it at 5 points.
This had been happening because the Central Bank maintains an interest rate policy that seeks to sustain the performance of deposits in pesos slightly above the daily devaluation. But now, with the latest rate hike, which came closer to inflation, the entity led by Miguel Pesce accelerated the “crawling peg” and therefore it seems that the gap tends to close.
It is evident that the financial exchange rate is not what companies strictly need to trade normally, although it is the value of the dollar that defines the market. Currently the blue dollar is trading around $470; the Cash with Liquidation (CCL) and the MEP $430, while the official about $230. Exporters have no incentive to settle with such a gap.
