This meant earning up to 2% more in US dollars since government intervention led to the same bond having different prices. Consulting firm Ecolatina calculated that, during the first semester, the government used US$1.2 billion to intervene in the MEP dollar market. The MEP dollar is the exchange rate implicit when investors buy shares or bonds in pesos and sell them in dollars in the local market. “Today, a new exchange rate gap between the immediate settlement MEP [exchange rate] and the 2-day settlement MEP was opened,” he told the Herald. The MEP dollar jumped by 0.3% and ended at AR$514 while the blue-chip swap rate was AR$576.7.
Source: Bueno Aires Herald August 04, 2023 16:33 UTC