Saturday , May 8 2021

The end of Lebac: the last $ 68 000 million is overdue and they are afraid that weights will weigh the dollar

Tuesday Lebac era ends, a central bank's financial instrument designed to exceed the one-euro financial instrument in 2002 and which in recent years has been instrumental in determining monetary policy and star-based investments for retailers and large investment funds.

The snowball for these letters, which was $ 1.5 billion a year, ended with crumbling weight that deteriorated by 100 per cent a year when the disarmament of these farms began to escape the dollar since April. .

The last validity of the Lebac calendar expires this Tuesday the last $ 68,000 million. After this date, the instrument is no longer recyclable. The question surrounding the market is what happens when the number of pans is "released" because they could increase the pressure on the foreign exchange market in an international context that did not affect the weight in recent days.

Lebac's "death" was the center of the crisis in April, which lasted until the end of August when the last major exchange rate trend took place. The central bank authorities started a partial renovation work calendar with the fleet disappearing.

In order to support the local currency in this process, the central bank put its reserves of dollars to support the "loose weights" of these parties. The assault progressed every month and, by the end of the year, originally planned to no longer be Lebacia.

These debt securities with a minimum loan period of 30 days were freely negotiated on a monthly basis between savers and retail investors, speculative funds, foreign investment funds, star financial instrument change in the mandate.

The exchange rate blow and the negotiation of the second agreement with the International Monetary Fund, the central bank decided that Leliq, with whom it deals with the issue of monetary affairs, to determine the new reference value for determining interest, is how many pesos are moving on the market.

Given this irregular exchange rate caused by this USD 68 000 million injection, financial analyst Juan Manuel Carnevale risks: "In my opinion, Lebac's expiration has nothing to jump. Although it rose in recent days, the Leliq course also rose, which indicates that the central bank does not allow anything to happen. The dollar should not rise much because the center will certainly raise that rate to manage it immediately. "

Without Lebac's chance for savers, we have to look for alternatives to place weights. And Carnevale, the best option is still "the simplest", the bank for a fixed period. "The best thing an investor can do is give a deadline 30, 60 or 90 days. People who need more liquidity can move to Lecap (Treasury tenders). But today the term term covers you for inflation. "

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