The result of foreign exchange operations with customers in the Single and Free Exchange Market (MULC)1 was again positive in February 2004 and would have been even higher if the purchases of foreign currency by the National Treasury channeled through the foreign exchange market were excluded. This result confirms the trend that has been manifesting itself for a long period, despite the seasonal factors that affected export earnings for the month, and the increase in import payments due to higher external purchases.
In contrast to what had been happening in recent months, where the Central Bank absorbed practically all of the surplus of the foreign exchange market, the BCRA and the National Treasury together acquired only 64% of the surplus. The rest of the surplus was allocated to an increase in the liquid foreign assets (PGC) of financial institutions and other net uses.
The purchases of the Central Bank and the Treasury in the MULC, and the increase in foreign currency deposits of financial institutions in the BCRA, were the main sources of increase in international reserves. On the side of the use of funds, net payments to international organizations were highlighted. The net result of these operations implied, for the fourth consecutive month, a new increase of US$ 83 million in international reserves, which totaled US$ 15,003 million at the end of February.
The level of net purchases of freely available foreign assets by the non-financial private sector (NFPS) is among the three lowest since the entry into force of the MULC in February 2002 and represents a sharp reduction both from the level recorded in the same month of the previous year (75%) and from January of this year (63%).
Net income from direct and portfolio investments by non-residents experienced a significant increase, doubling the values of January of the current year and quadrupling the amounts of February of the previous year.
