A new surge in implicit exchange rates, with increases of up to almost 8%, led the dollar to exceed 100 pesos on the stock exchange for the first time. El Contado con Liquidación shot up by 7.9% and drilled widely through the 100 pesos, to 102.21 pesos. The exchange rate gap widened to 56.3%, the highest since the end of 2015. The BCRA’s International Reserves rose this Monday by $57 million to $43.86 billion. This way, they accumulate a growth of $276 million in the last seven days.
Argentine Certificates of Deposit (CEDEARs), which represent shares of foreign companies: their prices rose to 32%, and their volume grew by 144%. Investors use this type of instrument basically to make dollars since the evolution of CEDEARs’ quotations is not only supported by the movements of the shares in New York, but they also receive the impulse of the “cash dollar” which, this Monday, shot up 7.9%.
On April 22, Argentina will face maturities of just over $500 million, for coupons on bonds governed by foreign law (global 2021, 2026 and 2046). The country could decide not to pay on that date and take the 30-day grace period it has to force an agreement – against the clock – within that period.
The S&P Merval stock index rose 3.1% to 28,880.64 units, after rising 5.7% last week. If we measure the performance of the leading panel in dollars, it showed a drop of 4.5%. Country risk, as calculated by JP Morgan Bank, rose 1.7% to 3,864 units. Argentine paper losses led by Corporación América, which plunged 9.7%. Central Puerto shares (-8.1%) and Edenor (-7%) joined the podium of significant losses. Further behind were the assets of Despegar (-6.8%); those of Irsa Propiedades Comerciales (-6.1%); and those of YPF (-4.8%).
Based on a survey conducted on the impact of isolation on the payment of rent, it revealed that 41.9% of tenants were unable to pay in April due to the loss of their jobs, and 58.4% of those interviewed received less income compared to March.
The consulting firm Elypsis estimated a 6.5% drop in the GDP for this year, thus revising a previous forecast (of -4.5%) due to the impact that the coronavirus and the mandatory quarantine will have on the activity.
Last Friday began the registration for companies to access the Emergency Assistance Program for Work and Production (ATP). As reported by the AFIP, more than 220,000 employers were already registered, and 7 out of 10 companies that agreed granted a 2-month extension of the payment of employer’s contributions for March that was due in April.