Argentine regulator limits the purchase of dollars with bonds By EFE

Buenos Aires, Nov 16 (.) .- The National Securities Commission (CNV), Argentina’s regulator, determined as of Tuesday a maximum limit to sell bonds in dollars as one more of the exchange controls that the country’s authorities South America apply to manage the demand for foreign exchange through the capital market.

According to a resolution issued in coordination with the Central Bank (BCRA) and the Ministry of Economy and published in the Official Gazette, the CNV establishes that the maximum limit to sell bonds in dollars under local law is 50,000 nominal weekly and can no longer be offset with purchases of the same assets.

The restriction affects operations in the segment of concurrency of offers with priority price time.

The Argentine authorities have maintained exchange restrictions since 2019 for access to the purchase of dollars for storage, payment of imports and financing that generate parallel exchange rates with the purchase and sale of bonds.

In addition, the BCRA has been intervening in the capital market by buying and selling negotiable securities to contain the rise in parallel exchange rates at the cost of selling reserves.

“In order to provide greater transparency to the market and reduce the referred need for intervention by the BCRA, it is appropriate to establish” that at the end of each week sales in foreign currency will not exceed 50 thousand nominal, says the regulation of the CNV.

The wholesale dollar, which is regulated by the BCRA, closed this Monday at 100.27 pesos per unit.

On the other hand, the value of the dollar in the financial mechanisms for more sophisticated investors operate with an exchange gap, which is what the BCRA tries to manage.

The “counted with settlement” (CCL, which consists of buying stocks or bonds locally with Argentine pesos and selling them in dollars on Wall Street) closed at 189.04 pesos per unit.

And the “stock dollar” or “MEP dollar” (which is achieved by buying assets that are listed both in pesos and in dollars, are paid in pesos when purchased and sold in dollars) closed 188.78 pesos per unit.

To avoid the intervention of official bodies, operators have moved to the so-called “Senebi dollar” (similar to the cash with settlement, but agreed bilaterally), which this Monday exceeded 208 pesos per unit.