This Wednesday, the international reserves of the BCRA they rose some US$5,364 million to US$29,001 million, maximum in two months when they lost the key floor in US$30,000 million. This day the IMF disbursement entered and the bridge loan from Qatar, CAF and China was cancelled.
It should be noted that the Board of International Monetary Fund (IMF) approved the disbursement of US$7,500 million for Argentinaa key decision at a time when the economic leadership aims to rebuild the foreign currency reserves of the Central Bank.
“It seemed important to us to inform and hold this press conference because today the fifth and sixth program review with the IMF and the disbursement of US$7.5 billion“, began the Minister of Economy, Sergio Massa in a press conference. And he pointed out that this sum will serve “to strengthen the program and the reserves of the Central Bank of the Argentine Republic“.
Massa said that with the money from the Monetary Fund, transitory advances of some $500,000 million will be returned to the Central Bank. In addition, he said that from Friday announcements aimed at strengthening the income of people affected by the devaluation will begin.
How are the Reserves of the Central Bank
Specific, international reserves rose US$5,364 millionafter having closed on Tuesday at u$S23,637 million.
The difference between the IMF disbursements and the increase in reserves is due to the repayment of loans granted by the Development Bank of Latin America (CAF), Qatar and China -through the yuan swap- to cancel capital maturities and interest to the IMF in recent months.
Besides, The Central acquired today US$101 million in the Single and Free Exchange Market (MULC), with which it added the seventh consecutive round with a positive balance.
Market sources specified that the monetary authority thus accumulates purchases for around US$970 million so far in August. “Preliminary data indicates that the BCRA finished today’s conference with consolidated purchases for approximately US$101 million,” said the exchange operator Gustavo P. Quintana.
official intervention
The Minister of Economy, Sergio Massa, assured today that part of the disbursement of US$7.5 billion that the IMF made to Argentina may be used to “intervention in financial dollars”which will be done through a “gang program” known only to the IMF and the Argentine economic team to “guarantee the normal functioning” of the dollar stock market.
“This allows us to transmit a situation of control of one of the variables that appears as uneasy, which is the operation of financial dollars”assured Massa, during a press conference in Washington, after a day that included a meeting with Kristalina Georgieva and other officials of the IMF Staff.
Source: Ambito
