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Changes on LELIQ Auctions

January 17, 2020. With the aim of improving monetary policy interest rate transmission and favoring the control on liquidity conditions, the BCRA will offer LELIQs for 7 and 14-day periods as from January 21.

In turn, the coefficient for calculating the borrowing rate on overnight transactions will remain unchanged next week but will be lowered to 0.5 as from January 27. This will stimulate the extension of maturity periods of the BCRA’s remunerated liabilities.

LELIQ auctions will be on Tuesdays and Thursdays with just one call for bids, thus, the two calls per business day will no longer take place.

Financial institutions will continue trading LELIQs through the LIQP session of the SIOPEL system at the Mercado Abierto Electrónico S.A. (MAE).

In each auction, bidders can place up to three bids, with a minimum amount of ARS10 million (face value) each. Bids cannot be changed or cancelled once entered into the system. Longer-term bids will be given priority. Bids will be awarded at multiple prices. A pro rata system will be used, if necessary. The opening of the trading session will be at 2.15 pm and bids will be accepted until 2.30 pm.

The BCRA will participate in the REPO trading session from 3.30 pm to 5.00 pm.

Lending rates will be calculated by multiplying the benchmark rate by 1.2 instead of the previously used 1.5 coefficient.

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