A CNV measure would affect mutual funds and savers

In Argentina, news about restrictions on foreign currency purchases, especially the US dollar, is very common. Now that was learned The National Securities Commission (CNV) could force mutual funds to value their holdings based on the official exchange rate. This was reported by Infobae in an article published on July 16, signed by Matías Barbería.

According to this article The CNV’s initiative would be to prevent dollars from accumulating in cash and to provide a way to hedge against increases in parallel exchange rates. It should be remembered that Argentina has many different dollar prices. “”The rule eliminates one of the ways savers have to protect themselves from devaluation“Noted the publication.

Barbershop wrote: “The National Securities Commission (CNV) will force pesos mutual funds to calculate the value of their shares at the official exchange rate to limit the possibility that savers can use these instruments to hedge against increases in parallel dollars. To save. The standard expected in the industry promises to have little impact on the market as the funds have adjusted their investments to accommodate this change. However, savers will find it more difficult to hedge against possible parallel dollar increases in the formal market. “

A CNV measure would affect mutual funds and savers
A CNV measure would affect mutual funds and savers

It also indicated that The CNV published Resolution 848, in which it changes the valuation criteria for investment funds. “After the fund managers ‘first readings, the axis of the norm was to change the evaluation criteria for the funds’ cash holdings,” the Infobae article said.

Bank statement and central bank policies

In addition, the Argentine media cited a statement by the company that regulates the Argentine stock market, saying: “According to the guidelines of the Central Bank of the Argentine Republic (BCRA) in its role as governing body in foreign exchange and financial matters, it is possible to value external assets – including foreign currency holdings – by using any type of exchange rate other than the wholesale closing rate, which results from the electronic operating system ‘SIOPEL’ of the Electronic Open Market“”

“Investing in dollars in cash is not usually the specialty of the industry, but given the exchange rate barriers imposed last year and the advance of dollars that are expected to be liquidated, Bag and Parallel, the funds of cover, in which savers and businesses Pesos placed. As investors’ shares were invested in foreign currency assets and US dollars in cash at the liquidation exchange rate, savers were hedged against increases in these alternative currency quotes, ”said Barbería.

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