In July 2024, the BCRA and the banks had already agreed to terminate most of the liquidity options on public titles, for a total value of $ 13.17 billion.
He Central Bank (BCRA) on Tuesday another potential source of monetary issuance, When agreeing with financial entities, termination of the remaining total balance of contracts for liquidity options (puts) of public titles national by a Total amount of $ 5.9 billion.
The BCRA communicated that it paid financial institutions $ 0.023 billion for these optionsvalue that is related to the tight premiums paid by the entities originally.
In July 2024, in a joint work, the BCRA and the banks had already agreed to terminate most of the liquidity options on national public titles, for a total value of $ 13.17 billion.
It then subtracted approximately 22% of pending contracts, which have now been terminated.
In this way, these types of contracts are completely eliminated, which represented a potential source of monetary expansion without direct control of the BCRA. “The termination of these contracts constitutes an additional step in the process of sanitation of the balance of the BCRA and is aligned with a monetary policy focused on monetary aggregates, guaranteeing greater control over the amount of money and reinforcing the predictability in the reduction of inflation, by eliminating potential sources of discretionary monetary emission”the entity indicated in a statement.
Source: Ambito
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