Central Bank returns to buying dollars

In contrast to a 2018 which saw billions of dollars of reserves sold off by the Central Bank in its first half in a vain attempt to halt a surging greenback, a dipping Washington currency qualified the Central Bank to make purchases to replenish its reserves on no less than three of the week’s five working days in accordance with the intervention bands agreed last year with the International Monetary Fund (IMF).

Monday already saw the dollar falling before its floor but the period was so brief that the Central Bank only had time to buy US$1 million before the greenback returned to the permitted range. Yet the closing two days of the week were a different story. On Thursday the dollar again perforated the floor of 37.35 pesos but, happy to see a revalued peso as an anchor against inflation, the Central Bank made timid use of its right of intervention, purchasing only US$20 million, and the greenback kept falling into yesterday..

The Central Bank redoubled its purchases to US$40 million yesterday but the dollar stayed below the floor for not intervening, 37.38 pesos at the close of the week.

The Banco Nación closed the week with an exchange rate of 36 pesos (buy) and 37.80 (sell). Other banks and bureaux de change averaged out at 38.24 pesos yesterday, 1.8 percent down on the previous day.