The yuan devalued 3% in May and caused a drop in reserves of USD 500 million to Argentina
Soybean
Argentina
Published Jun 1, 2023
Tridge summary
The objective of the Government today is to get dollars to contain in any way the attack by investors on the reserves. The STEPs are not the only obstacle; the international scenario is absolutely adverse to it due to its proximity to China. Beyond the lower harvest and the fall in international agricultural prices, it is enduring the lower activity of the Chinese economy, which weakened the yuan by 3% throughout May. This meant a loss of reserves of USD 500 million in 31 days. At the beginning of the month, a dollar was paid at 6,912 yuan and yesterday it closed at 7,118 yuan. The prospects for June for the most accessible currency for the Minister of Economy, Sergio Massa, are negative. The financial market is alert for this situation that causes the Central Bank an unexpected and uncontrollable drain on reserves. The entity chaired by Miguel Pesce is making an effort. Not only is it selling in the spot market, but it is playing strong in the futures market where…
Original content
The objective of the Government today is to get dollars to contain in any way the attack by investors on the reserves. The STEPs are not the only obstacle; the international scenario is absolutely adverse to it due to its proximity to China. Beyond the lower harvest and the fall in international agricultural prices, it is enduring the lower activity of the Chinese economy, which weakened the yuan by 3% throughout May. This meant a loss of reserves of USD 500 million in 31 days. At the beginning of the month, a dollar was paid at 6,912 yuan and yesterday it closed at 7,118 yuan. The prospects for June for the most accessible currency for the Minister of Economy, Sergio Massa, are negative. The financial market is alert for this situation that causes the Central Bank an unexpected and uncontrollable drain on reserves. The entity chaired by Miguel Pesce is making an effort. Not only is it selling in the spot market, but it is playing strong in the futures market where it has more ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes.
To learn more about our cookies, please read our Privacy Policy.