The exchange rate will tend in a downward direction during the rest of the year. This is what analysts from the Acobo Financial Group say, since they believe the exchange rate will not have strong fluctuations in the remainder of 2019 and could rather be down, thanks to the entry of new resources to the state coffers.
The government expects the collection of $15 billion due to the placement of debt securities called Eurobonds, which would push the price of the dollar down locally.
Eurobonds will allow the exchange rate to remain low for the remainder of the year and possibly the first quarter of 2020,”
said CEO of Grupo Financiero Acobo Orlando Soto.
The entry of these resources into the local economy will imply that there are more dollars available for the payment of interest on debts or salaries, for example, or for investments. This is important because it could generate a positive effect on the economy, which has been growing very slowly. According to the Monthly Economic Activity Index, last month the growth was only 1.5%, half that a year ago.
According to the analyst of Acobo, there is another reason that predicts that the price of the dollar will not rise: a low demand for foreign currency for imports. As the commercial sector does not foresee “excessive” consumption, many businesses still have excess inventory without selling, which discourages the purchase of goods.
The downward exchange rate is a reflection that there is distrust on the part of the consumer to spend or invest. This translates into no growth in the economy. That is why it is crucial that the government executes, as soon as possible, its reactivation plans by investing in infrastructure, which returns the trust of the people,”
said Soto.