Main aspects
In March 2017, foreign exchange operations arranged in the Single and Free Exchange Market (MULC) by the private sector and the public sector with banks and other entities resulted in net income of US$ 383 million, showing a reversal of US$ 627 million compared to the deficit observed in February, and US$ 488 million compared to the same month of 2016.
The Central Bank (BCRA) made net purchases of foreign currency for US$ 600 million in the MULC, generated punctually by the liquidation of funds resulting from debt placements by local governments, and made payments for foreign trade operations channeled through the Local Currency Payment System (SML) in force with Brazil and by ALADI for US$ 63 million. In the month, the BCRA did not carry out foreign exchange operations with the National Treasury.
The volume traded in the MULC totaled US$ 42,184 million (US$ 1,917 million on a daily average), showing an increase of 25% compared to the same month of the previous year.
The operations of the current account of the exchange balance were in deficit by US$ 837 million. Operations for transfers of goods from the foreign exchange balance registered a net income of US$ 640 million, as a result of export collections of US$ 5,062 million (year-on-year increase of 12%, with a 10% increase in oilseeds and cereals) and import payments of US$ 4,422 million (year-on-year increase of 10%).
The operations registered for services showed a net outflow of US$ 833 million, mainly explained by net expenditures linked to tourist expenditures abroad for US$ 903 million.
The capital and financial account of the “Non-Financial Private Sector” showed net outflows of US$ 610 million. The highlights of the account were net foreign asset formation of US$986 million and record net income from non-resident investments of US$908 million.
The foreign exchange capital and financial account of the public sector and BCRA resulted in a surplus of US$ 826 million, highlighting the income of the National Government from net placements of LETES for US$ 880 million. Likewise, income from foreign debt placements by local governments was recorded for about US$ 760 million, which was credited to local accounts in foreign currency through swaps, generating a neutral impact on the capital and financial account.
With these movements, the BCRA’s international reserves were reduced by US$ 86 million, ending the month with a stock of US$ 50,522 million, a level comparable to those observed in mid-2011, the year in which the historical maximums were observed.
