The BCRA will look for a repo with more international banks to prop up reserves without buying dollars

Vladimir WerningVice President of Central Bank (BCRA)said the entity A repo type loan will go in the short term with a “broader international banks” set of international private banks ” in relation to the subscriber at the beginning of the year for US $ 1 billion. Werning presented it as one of the roads for underpin international reserves without the need to buy dollars within the exchange band, together with the arrival of more disbursements of multilateral organisms that have already been announced.

Likewise, the official said that the monetary scheme provides that the interest rates are determined by “supply and demand” And he pointed out that high frequency data indicates that May began with a slowdown in inflationwhich will give continuity to what happened in April after the flash of 3.7% in March. This Wednesday, INDEC will announce the CPI last month.

Werning made these statements during his speech at the Annual Congress of Argentine Institute of Finance Executives (IAEF), which takes place this Tuesday at the Buenos Aires Convention Center.

The vice president of the monetary authority celebrated that the opening of the exchange rate for human people was without significant shocks in the value of the dollar. Pushing the exchange rate to the band’s floor is something that the government insisted after the debut of the new scheme through the warning to agriculture about the non -extension of the retentions reduction after the middle of the year, as a sign for them to liquidate quickly, and the strong intervention in the future dollar market with the objective of reactivating bets to the “carry trade”, among other tools.

What Vladimir Werning said

The vice president of the BCRA, during the IAEF 2025, said: “We launched the Stage 3which is the zero exchange gap stage, with radical changes that They shape a fiscal, monetary and exchange frame consistent“

“This reaffirms that the sequence of implementation chosen in an economic program, in addition to its general design, is very important for prosecute balance convergence“He exhibited.

Werning said that 2025, “like 2024, It will be considered a transcendental year in terms of Structural economic advance, And not one where the electoral calendar conditions or compromises those important decisions. “

“Stage 3 opens a period in which we think that Opportunities on risks predominate and expectations extend. Constitutes one Transition to an ambitious stabilization programtowards a sustainable growth program based on a regime of operational competence and palpable economic, “he said.

“We are going to an improvement quantitative and qualitative of the balance of the Central Banksimilar to the elimination of their liabilities but on the side of the assets, “he said and highlighted the role of the new indebtedness with the International Monetary Fund (IMF), whose first disbursement of US $ 12,000 million was already transferred to the BCRA through the replacement of non -transferable letters.

Reservations: The BCRA will seek a repo with other international banks

In that sense, he referred to State of international reservesa controversial point from the Government’s decision not to buy currencies within the band exchange, even despite the key quarter for the commercial currency flow, which opened questions regarding how the economic team foresees to comply with the IMF goal and strengthen your asset.

Werning implied that Adding more debt in foreign currency is one of the chosen roads: “The liquid reserves They will continue to reinforce with disbursements of multilateral organisms. The confidence generated by stage 3 and the more than 350 basic points that country risk has fallen, allows us specify in the short term the expansion of new facilities of Repo del Bcra with the participation of a broader set of international private bank “.

That is what he added, as he said Scopethe possibility of studying that the Government issues debt in pesos that is subscribed with dollars or direct letters in dollars, a commitment that recalls Luis Caputo’s experience under the management of Mauricio Macri with instruments that then ended up impacting after the outbreak of the exchange crisis and the reversion of that “Carry Trade” cycle.

“It is a matter of time for the country’s risk fall to open doors to the treasure of have a liquidity in dollars“Werning emphasized.” In order to continue expanding the availability of liquidity, the BCRA has taken prudent deregulation measures of the gear market. Changes in the regulations provide Another option for access to financing of abroad funds for the treasure, as long as external financing operates with a investment horizon greater than six months“He said.

Below the scenario, the climate was celebrating the official course. The Auditorium, made up of Finance Executives of companies of all size and sector, was in general aligned with the course and excited about the perspectives of the adjustment and opening plan.

However, doubts are not entirely evacuated. Especially in the front of the dollar and reserves. “The key is that all this are bridges until the dollars of a large scale cow begin to arrive. If not, this does not work”he said to Scope one of an experienced finance man with passing through different large companies in the transport sector. “The government needs to add dollars”another of the participants, of a multinational services, coincided while drinking coffee in one of the recesses of the event.

In the background, what generates repairs is the official insistence with appreciating the exchange rate and neglecting the front of the reserves. “I suspect or hope that after the elections the focus is to meet the reservations,” said Daniel Artana, a faithful economist, in another of the panels of Congress.