According to the statement, the Treasury Bill in dollars maturing on April 3, 2029, will be extended for an amount of US$35,729,361 million, to be delivered to the Central Bank, accruing interest from the date of its placement.
The official text also mentions several laws and decrees that establish the legal frameworks and procedures to be followed to carry out this expansion.
On Tuesday of this week, the third coupon of the Treasury Bill in dollars with maturity on January 16, 2033, in the Central Bank’s portfolio, expires. This is why the Ministry of the Economy will be willing to pay 60% of the interest services on that bill by extending another one.
The regulations also authorizes the relevant authorities to sign the necessary documentation to carry out the operation described. Finally, it is established that the measure will enter into force from the date of its issuance.
The economy assures the market that it will pay all debt maturities
He Ministry of Economy announced that it will proceed to purchase from the BCRA the foreign currency required to meet the total payment of interest of the Globales and Bonares bonds maturing in January 2025. With this measure, the Government is seeking to allay fears that Saturday’s announcements will depress stock values.
This operation will be carried out with part of the pesos corresponding to the financial surplus achieved in the first half of the year, which accumulated to May amounted to $2.3 billion.
“The corresponding US$1.528 billion will be deposited in the trustee, Bank of New York, and will be available only to be used for the aforementioned purpose,” the Government announced.
The latest government measures for the dollar
President Javier Milei announced from the United States the beginning of a stage of “monetary tightening”whereby the Central Bank (BCRA) will stop issuing money to buy foreign currency, in order to contain inflation and the rise in parallel exchange rates.
A measure that will come into effect this Monday and is seen as “a new upgrade of monetary policy.” The Minister of Economy, Luis Caputo, He explained and answered questions from various netizens.
“From now on, the amount of money will remain the same or will be reduced (if the Central Bank were to sell dollars in the MULC). That is, if the BCRA were to buy dollars in the MULC, the equivalent issuance of pesos will be sterilized by the sale of equivalent dollars in the cash settlement market (CCL)” and he added: “To the extent that the BCRA injects pesos by buying dollars in the MULC, it will effectively sell dollars in the CCL to sterilize those pesos. That is, the amount of pesos will no longer grow. It will only shrink, since we have a surplus.”
“The peso will be the scarce and in-demand currency, since taxes will continue to be paid in pesos. The absorption is based on the amount of pesos. In other words, the Central Bank withdraws only the pesos issued and keeps the net dollars to the extent that there is a gap,” he concluded.
Source: Ambito
