THE OFFICIAL EXCHANGE RATE DEEPENED ITS DECLINE, FALLING 1.2% ON THE DAY. As a result, it closed at $1,367.2, standing 17.1% below the upper limit of the exchange rate band. Financial dollar rates showed more contained movements, with the MEP declining 0.1% and the CCL rising 0.2%, widening the CCL-MEP spread to 3.3%. Meanwhile, the BCRA continued purchasing foreign currency, adding USD 95 M, bringing February’s net purchases to USD 1,350 M, while the year-to-date total amounts to USD 2,508 M. In this context, gross international reserves increased by USD 373 M to close at USD 46,634 M.

THE SESSION WAS NEGATIVE FOR PESO-DENOMINATED DEBT, DESPITE SHORT-TERM RATES SHOWING LESS STRESS than on Friday and closing around 35% NAR. Dollar-linked bonds led the declines, falling 1.5%, while the fixed-rate curve and CER bonds eased 0.3%. The exception was dual bonds, which were broadly flat (0.0%), in a context where TAMAR is approaching 35% NAR.

SOVEREIGN BONDS ALSO STARTED THE WEEK ON A NEGATIVE NOTE, UNDERPERFORMING EMERGING MARKET DEBT. They declined 0.6%, with more pronounced losses at the long end of the curve (-0.8%). As a result, country risk rose by 17 bps to 536 bps. Meanwhile, Bopreal bonds gained 0.2%.

THE MERVAL POSTED ANOTHER DECLINE OF 3.8% IN ARS TERMS, WHILE IN DOLLAR TERMS IT FELL 4.0%, CLOSING AT USD 1,920 AND UNDERPERFORMING THE LATAM EQUITY INDEX. The most affected sectors were materials, construction, and industrials, with Aluar, Supervielle, and LOMA leading the losses, posting dollar declines between 6.2% and 6.8%. Meanwhile, Argentine stocks listed on Wall Street dropped 3.6%, led by Globant (-8.6%), MELI (-6.5%), and Bioceres (-5.4%).