The Central Bank of Argentina (BCRA) arranged with six first-class international banks a passive pass-through operation (REPO) using part of its holdings of BONARES 2035 and 2038 securities. This operation is part of the set of measures implemented by the BCRA since the beginning of its administration, aimed at strengthening the country’s international reserves.
The transaction was carried out for the total amount of USD 3,000 million, for a term of 372 days. The BCRA will pay an interest rate equivalent to the SOFR in US dollars plus an average spread of 400 basis points, which is equivalent to an annual rate of 7.4%.
On this occasion, the BCRA received bids for USD 4.4 billion, exceeding the amount tendered by approximately 50%. Despite the high level of demand and considering the projections of strengthening international reserves, the BCRA decided not to increase the amount tendered.
The strong interest shown by the main international banks strengthens the process of normalization in the access to credit markets, in line with the drop in country risk that accompanies the consistent and sustainable macroeconomic order.
This new REPO operation ratifies the BCRA’s ability to access financing instruments at market conditions and efficiently manage its foreign currency liquidity, reinforcing the strength of its balance sheet and the country’s international reserves position.
