{"id":34237,"date":"2018-05-14T08:31:55","date_gmt":"2018-05-14T13:31:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34237"},"modified":"2018-05-14T08:31:55","modified_gmt":"2018-05-14T13:31:55","slug":"argentine-peso-collapses-to-new-low-despite-massive-intervention","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34237","title":{"rendered":"Argentine Peso Collapses To New Low Despite Massive Intervention"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-05-14\/argentine-peso-collapses-new-low-despite-massive-intervention\"><span class=\"field field--name-title field--type-string field--label-hidden\">Argentine Peso Collapses To New Low Despite Massive Intervention<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1132\" data-gtm-vis-first-on-screen-2077925_22=\"1132\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<div class=\"a2a_kit a2a_kit_size_32 a2a_default_style\" data-a2a-icon-color=\"#222\">\n<div><\/div>\n<\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><strong>Update:<\/strong> *ARGENTINE CENBANK SAID TO OFFER $5B IN PESO MARKET AT 25\/USD &#8211; That&#8217;s 10% of reserves!!<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-14_6-19-04.jpg?itok=HWWPxi8u\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/2018-05-14_6-19-04.jpg?itok=HWWPxi8u\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-14_6-19-04.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-05-14_6-19-04.jpg?itok=HWWPxi8u 1x\" alt=\"\" width=\"500\" height=\"258\" data-entity-type=\"file\" data-entity-uuid=\"9d674fee-1f37-435a-847e-0682118e332c\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>* * *<\/p>\n<p>The <strong>Argentine Central Bank spent over $1 billion buying pesos on Friday (and another billion to buy short-term bonds back)<\/strong> to support the collapsing currency&#8230;<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-11_11-25-30.jpg\" data-image-external-href=\"\" data-image-href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-11_11-25-30.jpg\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-11_11-25-30.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-05-11_11-25-30.jpg?itok=IBtVuYIq 1x\" alt=\"\" width=\"500\" height=\"259\" data-entity-type=\"file\" data-entity-uuid=\"0a27d9f5-737c-4c74-94fd-aa3e49dc4915\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>But&#8230; the weekend appears to have provided no confidence improvement for investors who are wary of this week&#8217;s maturing bills (traders see Tuesday as key day for the BCRA, when it is scheduled to faces maturity of ARS673mm in Lebacs) and the potential delays of any IMF bailout&#8230;<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-14_6-10-22.jpg?itok=NIpt-cvP\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/2018-05-14_6-10-22.jpg?itok=NIpt-cvP\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-14_6-10-22.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-05-14_6-10-22.jpg?itok=NIpt-cvP 1x\" alt=\"\" width=\"500\" height=\"257\" data-entity-type=\"file\" data-entity-uuid=\"fcbb6c42-8586-4820-b188-1b8141f42189\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p><strong>However, BNP Paribas says the Peso is too risky to even short, <\/strong>even taking into account the carry return&#8230;<\/p>\n<blockquote><p>\u201c&#8230;we prudently decided to close our tactical short 1m NDF USDARS at 23.75,\u201d strategists led by Gabriel Gersztein write in a report,<\/p>\n<p><strong>\u201cIf anything, this is not the time to be structurally positioned in ARS assets, in our view\u201d<\/strong><\/p><\/blockquote>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-05-10\/argentina-peso-risks-disorder-as-notes-come-due-jpmorgan-says\">But JPMorgan is even more concerned<\/a>, warning that <strong>the peso may face \u201cdisorder\u201d this week if the nation\u2019s central bank struggles to roll over about $30 billion of short-term notes set to expire<\/strong>.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-11_7-32-54.jpg\" data-image-external-href=\"\" data-image-href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-11_7-32-54.jpg\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-11_7-32-54.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-05-11_7-32-54.jpg?itok=tloSLwIQ 1x\" alt=\"\" width=\"500\" height=\"445\" data-entity-type=\"file\" data-entity-uuid=\"98e7573d-230e-4af5-bbdd-b8f18c59c266\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-05-10\/argentina-peso-risks-disorder-as-notes-come-due-jpmorgan-says\">As Bloomberg reports, <\/a>the central bank is scheduled to auction notes known as Lebacs on Tuesday, in order to roll over about 674 billion pesos ($30 billion) of securities that mature on Wednesday.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-11_7-39-20.jpg\" data-image-external-href=\"\" data-image-href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-11_7-39-20.jpg\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-05-11_7-39-20.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-05-11_7-39-20.jpg?itok=4hmL9WzG 1x\" alt=\"\" width=\"500\" height=\"351\" data-entity-type=\"file\" data-entity-uuid=\"d7fa9a12-83f8-41b6-8635-8c2c70965310\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>The yield on Lebacs due June jumped to 58.1 percent in the secondary market today, forcing the central bank to intervene in secondary markets.<\/p>\n<blockquote><p><strong>\u201cA failure in rolling over the maturing Lebac stock would lead to a disorder bid on the dollar and renovated capital outflow,\u201d <\/strong>JPMorgan analysts Diego Pereira and Lucila Barbeito wrote in a note.<\/p>\n<p>&#8220;The recent measures by the central bank, together with Lebac rates above 40 percent suggest the authority would be able to roll a significant share of the stock.\u201d<\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Argentine Peso Collapses To New Low Despite Massive Intervention Update: *ARGENTINE CENBANK SAID TO OFFER $5B IN PESO MARKET AT 25\/USD &#8211; That&#8217;s 10% of reserves!! * * * The Argentine Central Bank spent over $1 billion buying pesos on Friday (and another billion to buy short-term bonds back) to support the collapsing currency&#8230; But&#8230; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2251,20112,1036,7657,4318],"class_list":["post-34237","post","type-post","status-publish","format-standard","hentry","category-economics","tag-argentina","tag-argentine-central-bank","tag-currency-collapse","tag-peso","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34237"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34237\/revisions"}],"predecessor-version":[{"id":34238,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34237\/revisions\/34238"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}