Tag: peso

Government to pay electricity in pesos to save $300 million a year

From March 1, payments to electricity generators in the “spot” modality will be reduced to almost half and they will be in pesos, the same currency to be used for the binational hydroelectric plants rather than dollar, according to the resolution of the Secretariat of Energy published today in the Official Gazette. With this so-called ‘pesification’ step, the government expects to save $300 million per year and “regulate the tariff restructuring of the energy system with a distributive, equity, and productive sustainability criteria”, says the resolution.

Argentina’s peso will weaken even further, BNP forecaster

Argentina’s peso, the world’s worst-performing currency against the dollar in nominal terms in both 2018 and 2019, has nowhere to go but down, according to Gabriel Gersztein, the Sao Paulo-based head of global emerging-markets strategy at BNP Paribas SA. He predicts the peso will reach 100 pesos per dollar by the end of 2020, a 40% decline from the official rate now.

The appetite for Argentine peso bonds skyrocketed

In the last four weeks, the value of public securities in Argentine currency reached up to 145%, such as the 2020 Bonar, whose share price went from ARG$ 82 to ARG$ 200.95. In the last 7 rounds, the business with bonds issued in pesos already reaches 92.7% of the total operated last December, according to Mercado Abierto Electrónico (MAE). So far in January, increases in the prices of these issues accumulate more than 30%.