The Board of the BCRA approved its 2018 balance sheet and income statements; earnings amounted to ARS577 billion. An amount of ARS77 billion was transferred to the National Treasury, the ultimate addressee in accordance with Section 38 of the Charter of the BCRA. Such a figure equals USD1.726 billion the BCRA expects to collect from the Treasury during the rest of the year for interest derived from the sovereign bonds 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, the transfer of earnings is made without causing—even temporarily—any monetary effect or change in international reserves, thereby supporting the current monetary scheme.
Retained earnings—around ARS500 billion—improve the BCRA’s equity.
Eliminating 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.
