The Government blocks the dollar exchange and scares investors

At the last minute of the May 25 holiday, the National Securities Commission (CNV) surprised with a new General Resolution in which reinforces the control to the financial dollar. Its about mechanism known as parking, by which it adds 5 days of term between the purchase and the sale of the public titles by means of which the dollar Mep or the cash with liquidation is obtained.

Specifically, the agency established a minimum holding period of 5 business days as a requirement to carry out operations with settlement in foreign currency and to make their transfers to depositary entities abroad.

So, rIt strives both the purchases of the Mep dollar -which has local settlement- and cash with liqui -through which the currencies are transferred to foreign accounts-. Both companies as individuals looking for dollars in the market will be affected.

The intention of the regulation ands discouraging the purchase of dollars on the Stock Market, since adds a period of 5 business days, which end up being 7 days. With this, the operation becomes riskier because the price of the bond that is bought in pesos to sell against dollars may fall.

As reported by the body led by Adrián Cosentino, the measure is based on the need “to especially favor the mechanisms that promote national savings and its channeling towards productive development and strive for integrity and capital markets transparency and financial inclusion. “

In the recitals of the Resolution, the CNV board mentions the effects of the coronavirus pandemic “and its impact on the prevailing economic context”, which deepen “the need to make extraordinary decisions aimed at ensure the normal functioning of the economy, sustain the level of activity and employment and protect consumers. “

The rule will take effect tomorrow, when it is published in the Official Gazette.

Two exceptions

As established by the CNV regulations, there will be two cases in which parking will not be necessary:

-In case of purchase and sale of foreign currency assets in the same jurisdiction.

-In the purchase of securities in foreign jurisdiction and sale in foreign currency against local jurisdiction, except that the buyer is a human person.

We will have to wait 5 business days between the purchase and sale of government securities

As has been happening since the end of 2019, when the exchange stock was established, individuals will continue to have parking also in the sale of dollars. On the contrary, companies do not suffer from this restriction.

The market has long demanded that this obstacle be removed to generate a greater supply of dollars in the bag. Despite the fact that in March the CNV and the BCRA analyzed the issue and they let it be known that they would eliminate the minimum term of tenure in the case of currency sales, finally backtracked and ratified its validity with the norm approved today.

Control results

In recent weeks, the Central Bank, the FIU and the CNV they had announced that they would monitor about the cash transactions with settlement and dollar Mep.

In the statement released today by the CNV, it is also argued that from “sand they have verified operations implemented through the sale of Negotiable Securities that are intended to avoid restrictions on access to the exchange market for the purchase of foreign currency. “

The Central Bank, led by Miguel Pesce, further restricted the solidarity dollar operation

A few weeks ago, the entity chaired by Miguel Pesce had already reinforced the stocks when he established the obligation to do not trade dollar in the 30 days before and after to the acquisition of solidarity dollar. It is that the Central does not stop losing reserves for dollar purchases by individuals and companies. However, the Mep dollar and the liquidated cash do not have an impact on the agency’s coffers unless buyers of dollars on the Exchange choose to withdraw them from their bank accounts.

In addition, access to this operation had been forbidden to those companies receiving government aid to pay wages, through the Work and Production Assistance program or subsidized lines of credit.

I knew the value of the dollar in Dollar Today and I followed the quotation and behavior minute by minute. CLICK HERE
Find out the latest on digital economy, startups, fintech, corporate innovation and blockchain. CLICK HERE