Overview

• Pablo Quirno announced the Treasury would start intervening in the MULC to contain the exchange rate beginning Tuesday.
• Market sources estimated roughly US$100 million was sold on day one, with the BCRA executing the trades on the Treasury’s account.
• Official quotes dropped sharply, with the retail rate down about AR$13 to AR$1,378.91 and the wholesale down about AR$11 to AR$1,361 on roughly US$611 million in spot volume.
• Parallel and financial dollar rates showed mixed, volatile moves, while futures trading remained heavy as the BCRA concentrated support on the front end of the curve.
• Argentine sovereign bonds fell and country risk rose above 900 basis points as analysts highlighted the Treasury’s roughly US$1.7 billion in immediate firepower and questioned the sustainability of continued sales ahead of upcoming votes.