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They prepare more obstacles for the dollar with liqui: what are they?

The Central Bank and the National Securities Commission design new obstacles for the operation of the dollar with liqui. What is it about

He central bank and the National Value Comission design new obstacles for the operation of the dollar with liqui and the dollar of the Electronic Payment Market (MEP dollar).

Some options that are evaluated is expand the parking term and accentuate the cross checks between those who carry out these operations and those who enter the single market and free of exchange.

The BCRA identifies the main players in these markets as: hedge fund, mutual funds and insurers.

Cash locks with liqui

The National Securities Commission (CNV) this week ordered a series of new measures that limit the operations of brokers or intermediaries in the local market. These controls will be reflected in more obstacles to operating with alternative dollars, such as “cash counted”.

I know established a minimum holding period of five business days so that the negotiable securities coming from foreign depositories and accredited in the local custodian can be applied to the settlement of operations in foreign currency.

This was done through General Resolution 843/2020, published today in the Official Gazette, which also establishes that the agreement and settlement of operations in local currency of negotiable securities issued in the country, carried out by subjects under the control of CNV can only be carried out in markets regulated by the Commission.

Also, determined that the agents registered with the CNV, in their operations for their own portfolio, must offset purchases with sales of negotiable securities in the local market, and purchases and sales of negotiable securities in foreign markets.

The regulations clarified that “this means that the net position resulting from its intermediation activities, between the amounts of purchases and sales with cable settlement in the local market and the amounts of purchases and sales in foreign markets, must be null.”

The specialists consider that there will be liquidity problems

Impact

If any daily position is unbalanced, that lag it can be compensated at later dates, having to reach the end of the weekly period with a null position, the granddaughter buyer.

“They say it is to order the market but this takes away liquidity, makes the market more difficult and complicates cash operations,” said the head of a money table.

The president of the CNV, Adrián Cosentino, explained that the regulation “is in line with the standard criteria of the fixed income markets”, and that the measures for the order of the activity of commercialization of bonds “constitutes a common practice of responsible regulation , making market development compatible with systemic stability “.

“In circumstances of high volatility and complex conjuncture conditions, regulators must assume an attitude of maximum rigor and full pragmatism in the constant task of regulatory calibration, in relation to how the activity of financial intermediation, both bank and competent. to the capital market, “said the official.

The CNV put more restrictions on the operation of the dollar with liquidation

The CNV put more restrictions on the operation of the dollar with liquidation

What is the Liquidation Account (CCL)

The cash with liquidation (CCL) is the exchange rate that becomes important every time a stocks is installed or deepened, since it is the way to make dollars in the Free Stock Market because it is an operation between private parties. Although the validated price is higher.

This operation arises from buy a bond or share against pesos in the local market, and sell it abroad in dollars, which is equivalent to a currency purchase transaction.

There is also the inverse CCL, where a bond or stock is bought abroad with dollars and sold in the local market against pesos, which is equivalent to a sale of dollars.

“This operation has always existed, only in moments where there was no stocks, due to arbitration, the price was similar to that of the MULC, although it is always less efficient to carry out this operation because it involves paying commissions for the purchase / sale of the securities used, “says Roberto Geretto, chief economist at Banco CMF. to iProfessional.

Due to a matter of nature in its determination, this exchange rate will always be “high”, since exports are settled in the MULC, while portfolio dollarization is channeled in the “conta liqui”.

“In that way, while in the MULC there is a genuine supply of foreign currency, in the CCL no, except in the case that there is more capital inflow with pesification of investment portfolios, “says Geretto.

Therefore, it states that determining the volume of this market is a “difficult and inaccurate” task, since it would be necessary to add up all the purchase / sale operations of the used bonds and stocks, in which the genuine purchase operations are mixed. and sale of assets that occur regardless of the foreign exchange issue.

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