June 5, 2019. The BCRA Board approved its 2018 Balance Sheet and Income Statement (earnings amounting to ARS577 billion). An amount of ARS77 billion was transferred to the National to the National Treasury, the ultimate addressee in accordance with Section 38 of the BCRA Charter. This figure is equal to USD1.729 billion, an amount that the BCRA expects to collect from the Treasury during the rest of the year for interest accrued on the sovereign bonds held in its portfolio.
Furthermore, the BCRA and the Treasury agreed that such funds shall be kept at the BCRA until they are allocated to comply with the payments abovementioned. Thus, earnings are transferred without causing—even temporarily—any monetary effect or change in international reserves, thereby supporting the current monetary scheme.
Retained earnings—around ARS500 billion—strengthen the BCRA’s equity position.
The elimination of financing to the Treasury by the BCRA is pivotal to fight inflation. The enhancement observed in the BCRA’s Balance Sheet guarantees the sustainability of this process.