Following the approach we have had for the rest of the countries in Latam, wecreated a comprehensive monitor to gauge different monetary variables inArgentina as they directly impact the performance of risk assets in the country.    The latest FX report released by the BCRA indicated a substantial increase in USDdemand from the non-financial private sector - the foreign asset purchasesmounted for USD 2.47bn last month.    FX market volume reached a record-high of USD 42.3bn last month, with themajority of operations executed between financial institutions and clients. Thisreinforces our view that the increase retail demand was an important factorbehind the sell-off that took place in July.    Gross international reserves have been stable around USD 47.8bn, while netreserves stand at USD 31.3bn. Argentina remains below the IMF internationalreserve adequacy ratio.    We also took a look at the BCRA’s balance sheet. While the monetary authority networth currently stand at USD 4.8bn, when adjusted by illiquid/non-tradeableassets, it has been negative since 2006, reaching USD -71bn this month.    As of July 2017, the mutual fund industry reported a total AUM of ARS 495.1bn, a53% increase year to date. Funds hold a total of ARS 233bn (25% of the outstandingstock) of BCRA paper and posted a cumulative performance of 30% last month.    We plan on updating and enriching this report on a monthly basis, similar to whatwe already do with other countries. In terms of strategy, we are opportunisticallylong ARS due to the carry. Other than that, we believe that risk premium is lowwhen adjusted by the fiscal situation.

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