Much of the technical details of the agreement will be “confidential”, as official sources told Ámbito. In addition, they gave details about the differences with the China swap.
He Central Bank (BCRA) announced the closing of the currency swap with the US Treasury by US$20,000 million for the “exchange stabilization” with the aim of preserve price stability and promote sustainable economic growth.
“The economic clauses of the agreement will be confidential”according to sources from the monetary authority Scopewho also gave details about the operation of the swap and the differences with the old currency agreement with China.
Regarding the possible impact on the BCRA’s international reserves, they anticipated that it will occur only once each of the swap tranches is activated. “Currently, the BCRA has a solid balance sheet with ample liquidity and the disbursements of each tranche will be determined according to the needs that the BCRA has in the future,” they highlighted.
Characteristics of the swap with the US Treasury
The economic conditions of the agreement will be confidential online with others BCRA bilateral agreementsofficial sources stressed, to avoid generating incentives among investors who seek to arbitrate the countries’ positions. The same principle applies to the operations that the Exchange Stabilization Fund with the Bank of Mexico and what he had at the time with Uruguay.
A Once the disbursements have been made, the funds will be freely available, without restrictions on their use.
Regarding the differences with swap with Chinathere are some in the technical aspects and it has a different accounting. Both agreements allow the BCRA to expand the tools it has for the implementation of monetary and exchange policy.
Source: Ambito
