Informe de Evolución del Mercado de Cambios y Balance Cambiario

This report analyzes the evolution of purchases and sales of foreign currency in the foreign exchange market, corresponding to August.

Main aspects

In August, through Communication “A” 6037, the Central Bank made progress in the relaxation of the rules on foreign exchange matters initiated last December, substantially simplifying the general conditions in which the foreign exchange market had been operating since 2002.

The operations arranged by the entities authorized to operate in foreign exchange with their clients in the MULC resulted in a deficit of US$ 503 million.

Operations corresponding to freely available foreign assets of the non-financial private sector, and services, rents and other current transfers generated net demand of about US$ 1,500 million and US$ 1,100 million, respectively. Liquidations of local and foreign debt for about US$ 1,300 million, investments by non-residents for about US$ 430 million and net income from goods for US$ 425 million, were the main sources of foreign exchange.

The volume traded in the MULC totaled US$ 30,636 million (about US$ 1,530 million on a daily average), with a participation of the operation between authorized entities and their clients of 67% of the total operated.

The Central Bank practically did not intervene in the foreign exchange market. During the month, it made net purchases of foreign currency directly from the National Treasury for US$ 680 million that were deposited with the BCRA, and that, net of payments for foreign trade operations channeled through the Local Currency Payment System in force with Brazil and by ALADI for US$ 66 million, implied an increase in liquid assets in foreign currency for a total of about US$ 620 million.

Cancellations of capital and interest services on foreign currency debt for obligations with international organizations and with holders of National Government securities totaled US$ 706 million in the month. Likewise, contrary to what happened in the previous month, in August the withdrawal of funds from the current accounts in foreign currency of the entities in the BCRA for some US$ 1,250 million stood out, basically to meet the needs of the foreign exchange market, either through the sale of their own holdings or the granting of credits in foreign currency. movements that were partially offset by the increase in private deposits in foreign currency by US$ 350 million.

The operations of the current account of the foreign exchange balance resulted in a net outflow of funds of US$ 750 million, showing a decrease in the deficit of about US$ 600 million compared to the result of the same month in 2015, mainly explained by the reversal of flows by goods.

The capital and financial account of the foreign exchange balance registered a deficit of US$ 455 million, as a result of net expenditures of the private non-financial sector (NFPS) for US$ 399 million, the public sector and BCRA for US$ 213 million, and the financial sector for about US$ 97 million.

The BCRA’s gross international reserves fell by US$ 1,362 million during the month, ending August with a stock of US$ 31,150 million.