Wednesday, 24 August 2022 03:45

US$1,668,448,574.20 have been traded so far this year at the El Salvador Stock Exchange

Written by Coralia Cuellar

In spite of the inflation generated by the conflict between Ukraine and Russia, the increase in prices of several products, and the rise in interest rates, negotiations at the El Salvador Stock Exchange (BVES) continue to be dynamic in a higher proportion in the second quarter of 2022.

In an interview with Valentín Arrieta, General Manager of the Stock Exchange of El Salvador, he indicated that so far in 2022 they have managed to negotiate US$1,668,448,574.20 and US$90 million only in securitizations, which shows the strength and increase in the number of transactions for the second half of the year.

Although it is true, he was asked about the latest movements in the financial market, specifically in banking, where term deposits have slowed down, according to some financial analysts, because investors prefer to invest in short term products, that is, to have liquidity sooner; all types of instruments continue to be traded in the Stock Exchange.

Arrieta points out that the Brokerage Firms, which are alert to the market, do observe that many investors are turning to prefer shorter term instruments; they are the ones who suggest to their issuers that they can prepare either stock exchange paper, securities or any other instrument for shorter terms in order to maintain the dynamics of the negotiations.

One of the sectors that most often request financing are banks, but not necessarily, since a couple of months ago the BVES was in charge of negotiating instruments for the financing of construction projects.