Thursday, February 2

After payment to the IMF, BCRA reserves drilled US$38 billion and closed at the lowest since 2016

In addition to the payment to the Fund, this Friday US$90 million were paid with other organizations, while the BCRA had to sell some US$80 million on the exchange market during the day, sources from the monetary authority indicated.

Argentina paid the IMF this Friday the maturity of US $ 731 million, thus avoiding default and on the day he announced an agreement with the agency to deal with the US$44 billion debt assumed during Mauricio Macri’s administration.

The agreement will allow the country to buy time to pay the debt of more than 40,000 million dollars that it had to repay between 2022 and 2023. “We had an unpayable debt that left us without a present or a future and now we have a reasonable agreement that will allow us to grow and meet our obligations through our growth,” President Alberto Fernández congratulated himself in a speech.

In the agreement with the IMF, it was raised an objective of accumulation of international reserves. “By 2022 the growth of international reserves will be 5,000 million dollars”, specified Minister Martín Guzmán. Another agreed policy was the continuity of capital controls “that prevent Argentina from going through a situation of instability”, among the most relevant aspects of understanding.

Regarding the current level of reserves, the president of the Central Bank, Miguel Angel Pesce indicated this Friday that “they are changing day by day” and that there is a strategy to accumulate them: “We have on the one hand the result of the exchange balance, on the other hand an initial contribution from the Fund that will improve our reserves and on the other hand the multilateral credit organizations that we also hope will increase the positive net balance during this year”, he explained.

“Also what has happened in the year 2021 is that there has been a decrease in commercial financing to Argentina, which is received for imports and exports, and we hope that this financing after the agreement with the Fund will be restored to normal figures, then all that set is going to give an increase in reserves for the year 2022”, assured.

Regarding the swap with China, he said that “the president (Alberto Fernández) will be visiting China shortly and we always work with our colleagues from the Central Bank of China to improve the conditions of that agreement.”

“We hope to improve the disbursement conditions of the swap that we have with the Bank of China, but these are negotiations that we have permanently,” he added.

Regarding the reduction of the monetary issue, he maintained that “a drop in the issue was already foreseen in the Budget to finance the National Treasury, and that was an objective that we were also seeking.”