This agreement between the BCRA and financial institutions has eliminated a major potential source of money issuance. The terminated puts totaled ARS13.17 trillion.

The BCRA informs that it has accepted the offers for termination of liquidity options on Argentine government securities for a total amount of ARS13.17 trillion, ARS10.89 trillion of which correspond to American options (immediate exercise), and ARS2.28 trillion, to European options (exercise 30 days prior to the maturity of the security). The remaining amount of immediate exercise options was reduced to 22% of the original total amount. The BCRA has paid ARS0.09 trillion to financial institutions, which represent the updated price of the premiums originally paid.

This transaction helps significantly to reduce uncertainty about monetary programming by eliminating one of the elements with the greatest issuance potential in the financial system, without direct control of the BCRA.

This solution was only possible thanks to the joint work by the BCRA and the participating financial institutions, which prioritized the normalization of the financial system and the elimination of instruments that could potentially disrupt macroeconomic variables.

The BCRA thus takes an additional step in the process of consolidating its balance sheet, regains control of the monetary policy management and strengthens its commitment to eliminating sources of issuance that could adversely affect the process of financial stability and disinflation already underway.

July 18, 2024