“The goal is not a problem, it is already,” said the president, referring to the commitment agreed to the IMF. However, in the market they argue that, even with a new repo and the placement of Bonte 2030, it would not be reached to meet that goal.
The President Javier Milei said Friday that The goal of reservations committed to the IMF “is already fulfilled” and ruled out that it is a problem for the government. However, some private reports argue that, even with a new repo with banks and the recent placement of Bonte 2030, Argentina would not meet that goal.
“The goal is not a problem, that’s it”, The president sentenced in an interview with Neura, referring to the commitment agreed to the International Monetary Fund. In addition, he assured that inflation “It will be a problem of the past” and that the accumulation of reserves is not relevant in a flexible exchange rate scheme.
Milei explained that, at US $ 1 billion obtained this week with Bonte 2030, it will be added “a repo with the banks that will allow reaching US $ 2,000 million OU $ 3,000 million, and the IMF disbursements themselves, which will allow the entry of between US $ 2,000 million YU $ S4,000 million more”.
“When you have a flexible exchange rate, you don’t need to accumulate reservations”Milei insisted. And he argued that those who claim otherwise are “looking at the problem in an incorrect way.”
What does the market say about the reserve goal
In contrast to the president’s vision, some market reports warn that the reserve goal may not be fulfilled. Even with the funds of the Repo and Bonte 2030, they estimate that the BCRA could place about US $ 4,000 million below the objective set by the fund. That threshold, originally agreed for June 13, would finally be evaluated in July.
The gap would be explained, in part, for the commitments in foreign currency faced by Argentina in July, which are around US $ 4,300 million. The economic team plans to face them mostly with the funds captured through financial instruments, although it still remains to know the detail of an upcoming agreement with the banks for a new repo.
From the Treasury Palace they ensure that the financing scheme is aimed, But in the market doubts persist about the sustainability of the accumulation of reserves, especially if exchange flexibility is deepened and a greater demand for currency for tourism, commercial payments and dollarization of portfolios is enabled, something that is expected in the face of the months before the October legislative elections.
It is worth highlighting, in that sense that, during May, the international gross reserves of the monetary authority sank at US $ 2,106 million to US $ 36,854 million. While the BCRA did not intervene in any of the wheels of the month, the reserves touched their lower level since the arrival of “fresh” dollars of international organizations In mid -April.
Source: Ambito
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