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Argentina Rally Extends as BCRA Signals Net FX Buying and Dollar Debt Sales Resume

Analysts say fresh corporate issuance could channel dollars into the local market to support reserve rebuilding.

Overview

  • The central bank signaled it will begin net purchases of foreign currency to rebuild reserves and stabilize the exchange rate.
  • Energy issuers Tecpetrol and YPF sold more than US$1 billion abroad, reflecting renewed access as country risk fell to about 657 basis points.
  • Research firms expect additional corporate and provincial deals in the coming weeks, with potential dollar inflows into the MULC seen as supportive for the BCRA’s strategy.
  • Post‑election pricing surged, with sovereign bonds up roughly 20.4% and the Merval jumping 51.4% in the week after the vote.
  • Macro data remain weak, as consultancies estimate a September GDP decline that signals a technical recession, with investment posting two straight quarterly drops.