Luis Caputo blamed the banks for the dollar's rise: the technical explanation he gave

Over the past ten days, the dollar has risen, surpassing the $1,300 barrier, bringing it closer to the $1,400 threshold established by Minister Luis Caputo as the maximum limit. This phenomenon sparked public curiosity, and the public consulted the Minister of Finance on social media, a platform widely used by La Libertad Avanza , about the incident.

Faced with so many inquiries, the leader explained: "The banks were supposed to exchange the Lefi bonds for Lecaps. But the banks, fearful of losing daily liquidity, didn't go all out and preferred to invest in instalments . Since they all overflowed at the same time, it was clear that this would lead to a drop in the short-term rate, so the Central Bank began to absorb this excess liquidity," he indicated.

" That's when the banks themselves asked us for the tender we announced on Monday . Absorption via Treasury tender is a better option, because these are pesos that go to 2020. But in the meantime, since those pesos are settled next Friday, the BCRA absorbed 5 trillion in the last 3 business days, even though the priority always was, is, and will be to ensure there are no surplus pesos, in order to consolidate the disinflation process we are going through. Abzo," he concluded.

This explanation didn't convince everyone who followed up with the questions on X, but Luis Caputo didn't reply. Thus, the government's explanation for the dollar's rise is to blame banking institutions for their "fearful" market actions.

Amid renewed currency tensions, with the blue dollar climbing to $1,340 and financial rates also on the rise, the Ministry of Finance announced this Monday an extraordinary tender outside the official schedule , which will take place this Wednesday, July 16, with the goal of absorbing surplus pesos.

Specifically, with more than $5 trillion released into the financial system by the disappearance of these instruments, the Ministry of Economy seeks to channel this liquidity into Treasury instruments and prevent it from putting further pressure on the parallel foreign exchange market.