Reserves in the BCRA have increased for the fifth consecutive day: they are record with 67 000 million USD

The entity's preliminary figures show a net increase of $ 39 million the same day, mainly due to the increase in dollar deposits in the overall financial system and probably net cancellations of $ 39 million. Borrowing in foreign currency from the private sector. approximately $ 217 million, as "the change in currencies against the dollar, external securities, and other financial instruments included in the reserves showed a negative balance of $ 21 million," the agency said. .

Since 31 January, the Central Bank's net reserves have increased by USD 591 million from USD 66,409 million to USD 67,000 million. During this period, the entity recorded intervention purchases on the foreign exchange market for an amount of 275 million USD and the government placed its public debt in foreign currency for an amount of 281 million USD; while USD 35 million came from changes in reserves and other transactions with the rest of the world.

The new scenario that was presented almost early 2019 with the announcement by the US Federal Reserve of a policy of moderate interest rate hike, believing that the opportunities for acceleration had been eliminated, led to a shift in capital flows to emerging markets such as Argentina, attracted by the high interest rates and high yield still offered by public debt securities, and by the slowdown in the output observed between October and December.

While of the $ 1,394 million received by new credit lines from other international organizations, government bonds were used to cancel maturities with these entities for an amount of $ 1,668 million.

In addition, a portion of the reserves represents 18,000 million USD of the exchange with China, plus 5,500 million USD of additional pbad operations, with a guarantee of public securities (REPO, with banks Santander, BBVA Francés, HSBC, Citi, Deutsche, Nomura and JP Morgan.

Thus, some economists estimate that the absolute record of $ 67,000 million in reserves is reduced to $ 32,000 million, if the unused balance of the IMF turns, the Chinese swap and the REPO of the banks are subtracted; and about $ 20 billion if the reserves for private sector deposits are discounted.

Be that as it may, this figure seems weak not so much, because not only does the agreement with the IMF guarantee the payment of the following installments of the debt, but also because they stand out at the Central Bank when the government badumed the modification of the reserves. The gross amount of the entity was negative at more than USD 20,000 million, due to the difference between currencies and the balance of the sale of future unreserved dollars in available currencies as of December 10, 2015.