Using the Blue Chip Swap to Cover Fixed Costs in Argentina

With Argentina under a national quarantine until at least the middle of April, many of our clients who previously funded their operations in Argentina locally are no longer able to produce revenue. These clients are covering the fixed costs of their operations in Argentina by using the Blue Chip Swap, which allows funds to quickly, efficiently, and safely be transferred into Argentina.

The chart below shows the Blue Chip Swap rate compared to the official rate of exchange

Blue Chip Swap Rate, 2019-Present

Source: Bloomberg, March 31st

Using the Blue Chip Swap to Repatriate Funds

Additionally, some of our clients are using the Blue Chip Swap to repatriate funds from their Argentine subsidiaries. Doing so strengthens the balance sheet and better prepares the parent company to weather the storm ahead. In today's environment, cash is king, and funds trapped in Argentine pesos are not achieving their highest and best use.

The Cash Management Group has extensive experience in the blue-chip swap, having successfully executed numerous transactions for our clients. We have a team of experienced professionals who analyze market conditions and identify the best opportunities for their clients to maximize their returns. We also provide ongoing support to ensure that their clients are informed about any changes in the market that may impact their investments.

If you'd like to discuss using the Blue Chip Swap for your business, don't hesitate to reach out to us at 604.643.0101.

Disclaimer: Canaccord Genuity Corp. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and Canadian Investor Protection Fund (CIPF). The comments and opinions expressed in this commentary are solely the work of the Cash Management Group and Andrew Johns.