The decision, published in the Official Gazette with the signing of President Javier Milei and all his cabinet, authorizes the body responsible for the coordination of the Financial Administration of the public sector to execute the exchange of the Lefi stock held by the BCRA by Capitalizable National Treasury Lyrics in Pesos (LECAP)up to an amount of $ 28 billion of original nominal value (VNO). The new letters will be determined with market prices, while the Lefi will be valued according to their technical value at the time of the operation.
In practice, banks that subscribed through the Lefis, will lose that instrument and will have to plan how they will park that liquidity by means of short lecaps to a month or in money market funds. With this change, The LECAPS rate will be the new reference rate.
Objective: zero deficit and bcra sanitation
This initiative is registered within the framework of the economic strategy that the Government drew from the first day of management: eliminating the fiscal deficit, avoiding monetary issuance for financing and rebuilding the balance of the BCRA, affected by a bulky portfolio of paid liabilities accumulated in previous years.
The measure gives continuity to the program delineated in Decree 602/24 that enabled the issuance of Lefi in July 2024 for $ 20 billion, destined to withdraw from the balance of the central the remunerated liabilities such as the Leliq. One year after its placement, and having fulfilled its function, The Lefi will now be exchanged by instruments with secondary contribution, which will allow greater transparency and liquidity for the market.
“The sanitation of the BCRA is a fundamental step to strengthen monetary stability and consolidate the change of economic regime,” they argue in the Ministry of Economy.
New debt to order maturities
In addition to Lefi’s exchange, the DNU also Authorizes an extension of the issuance of Treasury letters for $ 50 billion to be used during the second half of the year, especially in November and December. This new issuance will allow transitory financing needs without compromising the structural fiscal balance.
The decree empowers to issue instruments with expiration in 2026 and deadlines below 90 days, reinforcing the flexibility of the treasure to administer its liquidity and at the same time maintain the financial order.
In parallel, the Ministry of Finance and the Treasury is enabled to continue with the Cancellation of non -transferable letters That the BCRA has in portfolio since previous years, starting with the closest expiration. These payments may be financed with disbursements from international organizations or other sources, which will contribute to a sustained improvement of the state’s liabilities structure.
Lefis are eliminated: what repercussions will bring on interest rates
“The Lefis were Treasury Lyrics that the Central Bank was responsible for managing and served to remunerate idle bank balances. The Lefis came to replace the famous passive passes, Leliqs, etc. Now all that balances are going to have to look for other instruments, the first thing will be short lecaps. We are very likely to see virtual wallet rate down strongly “, He said CEO of Capital coconuts, Ariel Sbdar After the information was known.
In turn, Federico Machadoeconomist of the Policies Observatory for the National Economy, said that Lefi’s non -renewal at the expiration of Julio represents “The final step in the standardization of monetary policy”. “From now on, The BCRA will administer liquidity through bond operations in the secondary market, as usual in other countries with floating exchange rate. “
For this expert this means that There is no more monetary policy rateand the “monetary aggregates” regime is consolidated. “This could have An upward impact on the interest ratesince there will no longer be the option of remunerating monetary balances one day. The bank liquidity will be applied to short letters or to the current account of the BCRA with 0%remuneration, “he explained.
It should be noted that The monetary aggregate regime is a monetary policy strategy that seeks to control inflation by limiting the amount of money in circulation. To do it, instead of setting an interest rate, The Central Bank sets goals about the growth of certain “aggregates” (as M1 or M2). In this way, the government terminates the use of the monetary policy rate as an anchor in the disinflation process.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
