[HIGHLIGHTS] Dollar and stocks or stocks and dollar, the Argentine film without an ending

The official wholesale dollar of $869 that is updated at 2% monthly compared to inflation of 11%. The Central Bank continues to buy dollars, and the exchange gap (official and free difference) is between 15 and 20%, a level significantly lower than at the end of last year.

The dollar tends towards a backward situation, but the government will not devalue it because it contains inflation. The exchange rate will continue to be present in Argentina where pesos are lacking, and dollars are still not enough. For the government, this time, the ending of the movie will be different because there will be a fiscal surplus, and that result will make a devaluation unnecessary. The official decision to once again use the stagnant dollar as a key instrument in the attempt to moderate inflation is justified. The government worked with its sights set on reducing it and achieved it in the heat of the foreign exchange liquidation induced by the possibility that exporters had liquidated 80% of the foreign exchange for the official dollar. The greater supply of foreign currency in the free market generated by 20% consolidated the drop in cash with settlement and blue, which at $1,040 registered a drop of 17% without taking into account what it lost to inflation. With the dollar tending towards a possible situation of backwardness, an exchange rate that is still present, and the expectation of businessmen that it would continue at least until the end of the year, it remains to know what a stable dollar price could be. The main indicators reflected in the decrease in the VAT collection linked to consumption are a drop of 12.6% in retail sales, or 40% in the Construya. Index, and 41% in patenting motorcycles. They demonstrate the depth of the fall in activity as a result of the strong adjustment generated by the December devaluation and the monetary contraction to achieve the powerful fiscal surplus of the first two months. Minister Caputo continues to seek the US$15 billion, whether from the IMF, the markets, or loans from countries that can accelerate the exit of an exchange rate that blocks the outflow of foreign currency.