Particle.news
Download on the App Store

Argentina’s Gross Reserves Hit $43.61 Billion Record as Central Bank Unveils New FX-Buying Program

Despite the jump, IMF-style net reserves remain deeply negative.

Overview

  • Gross reserves rose $596 million on Friday to $43.61 billion, capping a Christmas-shortened week gain of $1.197 billion on inflows from international bodies, gold revaluation and currency moves.
  • The Central Bank introduced a new mechanism to purchase foreign currency within the trading bands, initially allowing buys of up to 5% of each day’s market volume.
  • Economy Minister Luis Caputo said the Treasury bought nearly $900 million off-market to help cover a roughly $4.2 billion payment due on January 9.
  • About $700 million is expected from newly signed concession and share-transfer contracts for Comahue hydroelectric dams, which officials say would ease January funding needs.
  • Local estimates put net reserves at about negative $15.8 billion under the IMF metric, far below the December target and likely requiring a waiver.