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.

The global economy is facing the uncertainty associated with the armed conflict between Russia and Ukraine and the increase in benchmark interest rates in the world’s major economies due to rising inflation, mainly as a result of the increase in international energy and food prices and disruptions in input supply chains. In this context, the BCRA continued to improve foreign exchange regulation in order to promote a more efficient allocation of foreign currency. In August, entities and their customers bought USD 24 million and USD 394 million respectively, of which the BCRA sold USD 310 million in the foreign exchange market and made net payments through the Local Currency Payment System for USD 108 million. In addition, there were direct sales to the National Treasury for USD 228 million.

The “Real Sector” was a net seller of foreign currency for USD 476 million. Within this group, the main sector in terms of net sales in the foreign exchange market, “Oilseeds and cereals”, recorded net revenues of USD 2,855 million, 6% more than the same month in 2021.

The “Real Sector excluding Oilseeds and Cereals” was a net buyer for a total of USD 2,379 million, exhibiting a year-on-year increase in purchases of 11%. The purchases were mainly intended to make payments for net imports of goods and services and to pay off financial debt.

The “Individuals” bought USD 702 million net, basically to meet expenses made with cards for consumption with non-resident suppliers and for treasury, for USD 406 million and USD 251 million, respectively.

The “Institutional investors and others” sector, both resident and non-resident, made net purchases in the month for USD 108 million.

The foreign exchange current account, which includes net flows from net exports of goods and services and primary and secondary income, registered a deficit of USD 572 million. This result was explained by the deficit results of “Services” and “Primary income” of USD 1,072 million and USD 844 million, respectively, partially offset by net income from “Goods” of USD 1,345 million.

The foreign exchange financial account of the “Non-financial private sector” had a deficit of USD 709 million in the month. The records for the cancellations of foreign currency balances with local entities for the use of cards with non-resident suppliers for USD 343 million (which do not entail a net demand for foreign currency), the cancellation of foreign loans, debt securities and local loans for USD 286 million and the formation of foreign assets for USD 177 million stood out.

In August, the operations of the foreign exchange financial account of the “Financial Sector” resulted in a surplus of USD 114 million. This result is mainly explained by net loan proceeds of USD 85 million and by the decrease of USD 29 million in the liquid foreign assets of the entities that make up the General Exchange Position (PGC).

On the other hand, the operations of the foreign exchange financial account of the General Government and the BCRA resulted in a surplus of USD 407 million, mainly explained by income from the concepts of “Loans from other International Organizations and others”.

In August, the BCRA’s international reserves fell by USD 1,497 million, ending the month at a level of USD 36,734 million. This decrease was mainly explained by the fall in the price in US dollars of the assets that make up the reserves for UDS 591 million, the BCRA’s net sales in the foreign exchange market and the net payments of interest and charges to the International Monetary Fund for the equivalent of USD 466 million (SDR 353 million).