Exchange Rate Expectations Report (IEC)

The end of Convertibility and the peso devaluation, determined the return of inflation to Argentina, and with it, that of indexation (though the Reference Stabilization Coefficient – CER by its Spanish acronym)

Based in the equilibrium relationship postulated by the interest rate parity between bonds indexed by CER and securities issued in dollars by the argentine government, the CIF at Universidad Torcuato Di Tella, has created an index whose objective consists on surveying market expectations relating to the future path of the exchange rate between the US dollar and the argentine Peso.

The indicator is a valuable instrument that can be used for the monitoring of macroeconomic fluctuation, or the evaluation of investment alternatives.

Additionally, an analysis of yield curves of public securities in dollars and in pesos (indexed by inflation) is presented. These represent not only the benchmark with which performance of other financial assets should be assessed but also the better estimation of the financial cost for the government.