Today, the BCRA and financial institutions have terminated all outstanding liquidity options on Argentine government securities for an amount of ARS5.9 trillion. The BCRA has paid ARS0.023 trillion to financial institutions for these options; such amount is related to adjusted premiums originally paid by financial institutions.
In July 2024, the BCRA and financial institutions had agreed to terminate most liquidity options on Argentine government securities for an amount of ARS13.17 trillion. After that, the remaining outstanding options (approximately, 22%) have now been terminated. Thus, these options, which represented potential sources of monetary expansion without the direct control of the BCRA, have been eliminated.
In line with the monetary policy focused on monetary aggregates, the termination of these options is an additional step towards the BCRA’s balance sheet clean-up, ensuring greater control over the amount of money and reinforcing predictability regarding inflation reduction by eliminating potential sources of discretionary monetary issuance.
