Day: March 31, 2020

The government will bid on Treasury bills

The S&P Merval index lost 30.3% measured in pesos and closed at 24,384.24 units. The Buenos Aires stock market suffered during March a 34% slide in dollars (measured by the CCL) and 30.3% calculated in pesos, becoming one of the most affected markets in the world due to the economic and health effects, still uncertain, as a result of the coronavirus outbreak. Bonds rose to 6.2% (AA37) on Monday, in a market attentive to signs of debt restructuring promoted by the government, a situation that reflected an improvement in country risk, which fell 2.5%, or 105 points, to 4,082 units.

The economy contracted 1.8% in January and accumulated 19 falls in the last 21 months

The economic activity during January fell 1.8% concerning the same month last year, the Monthly Economic Activity Estimate (MEA) during January was 0.1% below last December’s record. The most significant interannual declines were in Agriculture and Livestock, with a decrease of 6.8%, Industry (-1.3%), Construction (-13.7%) and Banks and Financial Intermediation (-7.8%). The EMAE includes several of the components that comprise the Gross Domestic Product (GDP), which decreased by 2.2% in 2019.

Financial assessment for March

The tourist dollar, which carries the 30% surcharge for the Country Tax, rose 3.6% this month to 86.37 pesos. The retail dollar rate accompanied the Single and Free Market (MULC), where the currency also rose 3.6% to 64.47 pesos in March. The blue dollar closed stable at 83.5 pesos, with a rise of 6.4% in the month and the Cash with Liquidation (CCL) – which results from the purchase and sale of shares or bonds to escape foreign exchange – rose 43 cents to 86.92 pesos, so the gap with the official was at 34.8%. The BCRA’s International Reserves fell this Monday by $150 million to $43.58 billion; the coffers lost $1.2 billion during the last 30 days.

The S&P Merval fell 34% in dollar terms during March

The S&P Merval index lost 30.3% measured in pesos and closed at 24,384.24 units. The Buenos Aires stock market suffered during March a 34% slide in dollars (measured by the CCL) and 30.3% calculated in pesos, becoming one of the most affected markets in the world due to the economic and health effects, still uncertain, as a result of the coronavirus outbreak. Bonds rose to 6.2% (AA37) on Monday, in a market attentive to signs of debt restructuring promoted by the government, a situation that reflected an improvement in country risk, which fell 2.5%, or 105 points, to 4,082 units.