The balance of foreign exchange operations with customers in the Single and Free Exchange Market (MULC)1 was again positive in March 2004, resulting in a surplus of US$ 1,089 million for the first quarter of 2004.
The net purchases made by the Central Bank in the MULC in the quarter for US$ 1,202 million were higher than the market surplus, offsetting the decline in the foreign assets of financial institutions.
The increase in the Central Bank’s international reserves of US$ 885 million in the first three months of the year is basically explained by the BCRA’s net purchases in the MULC and by the public sector deposits in the Central Bank of purchases in the MULC for US$ 130 million, effects partially offset by net payments to agencies (US$ 462 million). As of March 31, the stock of international reserves reached US$ 15,003 million.
The current account of the exchange balance for the first quarter of the year registered a surplus of US$ 2,096 million, which together with the deficit of the capital and financial account of US$ 1,211 million, resulted in the aforementioned increase in international reserves of US$ 885 million.
Collections for exports of goods in the first quarter for US$ 6,522 million show a growth of 22% compared to the same period of the previous year, constituting the second highest quarterly level since the MULC came into force. In particular, in March, the highest monthly level of export collections since the establishment of the MULC was recorded (US$ 2,474 million), with a daily average of more than US$ 100 million.
In line with the sustained increase in the level of activity and the strong year-on-year growth that has been observed in shipments to the market, payments for imports of goods in the first quarter showed the highest amount since the establishment of the MULC (US$ 3,814 million), registering a growth rate of 61% in relation to the same period in 2003.
Net purchases of freely available non-financial private sector (NFPS) foreign assets in the quarter (US$ 723 million) implied a decrease of 21% compared to the same period of the previous year.
Among the operations carried out with international organizations during the first quarter, the maturity of March 9 for the equivalent of US$ 3,083 million with the International Monetary Fund (IMF) for the SRF (Supplementary Reserves Facilities) stood out, which was compensated in the same month, with a new disbursement within the framework of the agreement signed with said organization.
Net income from investments by non-residents was also highlighted, of which US$ 213 million corresponded to direct investments, almost doubling the amount recorded in the same period of the previous year.
