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Argentina Seeks Funding To Meet Jan. 9 Bond Payment as New FX Band Regime Starts

Investors await clarity on bridge financing to cover the week’s bond payout gap.

Overview

  • Argentina faces roughly US$4.2 billion due on January 9 for capital and interest on restructured sovereign bonds.
  • The Treasury holds about US$1.8–2.0 billion in deposits after raising roughly US$1.0 billion via a Bonar 2029 sale and is weighing a short‑term repo of about US$2.0–2.3 billion, with the U.S. swap facility kept as a backstop.
  • The central bank began a banded float on January 1 indexed to the latest monthly inflation, lifting January’s ceiling by 2.5% to roughly $1,529–$1,533 per dollar and pledging reserve purchases up to 5% of daily volume.
  • International reserves stand near US$43.1 billion after a US$1.934 billion rise from start‑of‑month flows, the BCRA did not buy in the FX market on the debut day, and the official dollar is about $1,495 with parallel rates elevated.
  • The government is negotiating with the IMF to adjust the reserve target and unlock about US$1.05 billion tied to the program’s second review as markets track risk premium near 553 basis points.