Currency traders in Argentina drain the dollars of Javier Millie

President Javier Millie faces a tremendous enemy trying to contain running on the bizo before the decisive elections in the middle of the period: Creative currency traders in Argentina.

Have the history of the South American country for strict exchange controls and economic crises for investors to develop countless strategies to extract profit from government policies. Their sperm for dollars can be a thorn on the side of Argentine leaders who suffer from financial hardship.

Individual traders submitted 9.5 billion dollars from the central bank in April from April to August to sell it for more bizo in the parallel exchange market, according to a report issued by Buenos Aires owned by the public in Panco Provinsia, which was martyred by local mediation One618.

The purchases, which is equivalent to nearly half of the agricultural export dollars from the Argentine harvest season, have made it difficult for the monetary authority to buy the dollar to rebuild its rare difficult reserves without weakening the peaso, which Millie was keen to avoid.

“In Argentina, anyone who understands market tricks can make profits that are not present in other parts of the world, at the expense of the central bank’s depletion,” said Salvador Vetty, head of research at the local Romano Group.

Millie’s failure to build reserves has led to investors in recent weeks and expelled a sale of Argentine assets.

The disturbances began on the market last month, when a loss in the poor local elections raised support for free market reforms in Milli, sending bond prices and declining peso. This feeds the expectations that the government will soon have to transfer the value of the Bezo from the scope of the current exchange rate, which doubles the sale.

Scott Payet, a mysterious pledge of financial support from the US Treasury Secretary, Scott Pessente, has not ended, but the volatility did not end, with a 10 percent increase last week before it decreased by 7 percent this week.

Millie blamed political enemies, who say they have sold Bizo or encouraged others to do so. “They are ready to burn everything to win power,” local media told the local media on Wednesday.

But analysts said that merchants will also have less thorny reasons to pressure the bizo.

The demand for dollars usually increases in Argentina before the elections, where individuals and companies move against political risks. This trend has intensified since the sudden initial loss of 2019 by conservative President Mauricio Macri to the leftist Peronians, who spent about 40 percent of the stock market in Argentina in one day.

The demand for the dollar also increased last month when the political crisis weakened both the black market exchange rate and a legal parallel rate, while the official bizo was supported by the intervention of the central bank. The extensive gap between the exchange rates on arbitration deals, known locally as “El Rulo” (the cylinder).

This is among the simple Argentines used by the Argentines to obtain the official exchange rate, which was tightly accessed before it reduced Millie from currency control tools in April.

Companies may manufacture bills for legal advice abroad or IT services to reach the cheapest exchange rate for importers. In 2010, there was “a tendency to open the fake beach bars in Uruguay and bring a pile of credit cards to make payments on the card machine,” said Diego Farraja, Argentine tax lawyer.

He added: “Foreign currency distortions lead to many companies, some of which are legal, and some are illegal.”

The exchange policies are the basic for the work of Argentine merchants. One of the local mediators said: “They may start today in New York by checking news wires, the first thing the Argentine merchant is doing is the COMMS page for the Central Bank,” said one of the local broker.

He added: “It is extremely important to have a good legal section that can explain every new rule quickly so that you can quickly benefit from changes without incurring any fines.”

Last Friday, the Miley government restored a base that prohibits individuals who buy dollars in the official market from selling it in the parallel markets. Meanwhile, the central bank warned the digital portfolio applications, which many Argentines use to invest and pay payments, to stop selling dollars at the official rate, saying that they misunderstood the current rules.

These moves are designed to reduce the pleading, which has swallowed a large part of a $ 7 billion flow of dollars in agricultural export from wet grains attracted by the government in the market in recent weeks through a brief export tax vacation, as they fought to support the bizo.

But analysts said that Argentina was well practiced in finding ways about the rules. “You will have pairs as one buys the official dollar, and the other sells it in the parallel market,” said Vitley.

Reconsting restrictions also has side effects. Reducing the number of official dollars to the parallel market has caused more parallel bizo, which expands the gap with the official exchange rate to 5 percent.

Analysts say that the exchange rate gap is wider.

“It is a slippery slope,” said Juan Manuel Bazos, chief economist in One618. “Anything that restricts it creates arbitration elsewhere, and thus you need to create more regulations to prevent this pleasure, and the moment when this arbitration is prohibited.

Economists estimate that the central bank has only a few billion dollars of liquid reserves that they can use to support the bizo and defend the exchange rate, with three weeks until mid -term elections.

Most of them said they expect the authorities to sell everything they can to avoid reducing the value of the value of opinion, but the government exchange rate policy must change after that.

In an attempt to calm the markets, Milli told local radio on Wednesday that the government “is working on” the support “of the United States. Washington Ministry officials are scheduled to visit Washington this week, before Millie’s visit to the White House on October 14.

“We knew this could happen,” the president added from the market turmoil. “Now it is the issue of reaching hell and this year of election.”