Net reserves fell to -US$8.6 billion after the purchase of Treasury dollars to pay off debt

The Negative net reserves of the Central Bank reached about US$8.6 billion, after the purchase by the Treasury of some US$2.8 billion for payment of bond capital maturity in January.

The estimate is borne by Portfolio Personal Inversiones (PPI). In a report. The entity highlights that “The Treasury purchased the dollars necessary to pay the principal of the bonds maturing in January 2025.”

“New monetary data revealed that on Monday (November 25) “Treasury foreign currency deposits in the BCRA increased by US$2,812 million,” highlights the work.

PPI states that “Taking Treasury deposits in the BCRA as short-term liabilities, net reserves fell from -US$5,746 million last Friday to -US$8,613 million yesterday (that Tuesday).”

In this way, the work indicates that “now, the level of reserves is comparable to mid-January” at the beginning of the management of the current economic leadership.

On the other hand, he highlights that “the less acidic measure of net, which does not subtract twelve-month Bopreal maturities or Treasury deposits, was not affected and “It remains at -US$4,307 million.”

Dollar deposits at highs

However, the report says that “What is relevant, and that marks a difference with December 2023 and January 2024, is that the liquidity of the BCRA reached maximums of the Milei Administration when located in US$14,531 million.”

Meanwhile, it is highlighted that “for the moment, The purchase of the US$2,812 million did not alter the total deposits of the system in foreign currency. “Only when the Treasury decides to transfer the dollars to the Bank of New York (BONY) will the Central Bank’s liquidity be compromised.”

“If this transfer were made today, it would fall from US$14,531 million to US$11,830 million. Meanwhile, purchases in the Single Free Exchange Market (MULC) and the increase in reserve requirements will continue to boost it,” says PPI.

The Government guarantees payments

Pablo Quirno, the Secretary of Finance, went out on social networks to guarantee the payment of the debt in Treasury dollars. “We have already said everywhere and the Minister and I reiterated it again, that the maturities are paid and we will not carry out any market operation to cover said maturities. “Both the interest dollars and the January amortization have already been purchased,” he explained.

However, these are indicators that will continue to vary as the days go by as the Central Bank continues to buy dollars in the local market.

Purchased this Wednesday US$227 million and extended his undefeated streak to 41 consecutive rounds. Just when it was believed that the pace of purchases was slowing, it recorded the highest positive net balance since US$245 million on November 13. In any case, it would be more of a specific factor than a change in the trend.

The US$227 million could be explained by the liquidation of a specific placement of a corporate. The ONs of YPF LUZ for US$100 million and those of Línea Naranja for US$179 million could be the explanatory factors for the unusually high volume in the MULC.