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 May.

Main aspects

In May, the Central Bank again made net purchases through the foreign exchange market, this time for USD 2,083 million, which allowed the BCRA’s international reserves to increase in the month by USD 1,609 million.

The domestic and global economy continues to undergo a gradual recovery from the health and economic crisis caused by the COVID-19 pandemic, which impacted both the level of global and local activity, trade flows and capital movements. In recent months, the BCRA has implemented regulatory modifications that affect the foreign exchange market in order to promote a more efficient allocation of foreign currency. In this context, the clients of the entities and they sold USD 1,794 million and USD 289 million net in the foreign exchange market, respectively, which were purchased by the BCRA. Likewise, the National Treasury made direct purchases from the BCRA for USD 497 million.

The real sector was a net seller of foreign currency for USD 2,176 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 3,854 million. In a context of high international prices of agricultural products and in line with the expected seasonal behavior of the sector, this level was an all-time record and more than doubled the revenues recorded in the same period of 2020. Revenues from the collection of exports of goods in the sector were at levels higher than customs flows from FOB exports by about USD 850 million, which would imply a new increase in the level of commercial debt in the sector.

The “Real Sector excluding Oilseeds and Cereals”, on the other hand, was a net buyer in the foreign exchange market with a total of USD 1,678 million. The purchases were mainly intended to make payments for imports of goods and services, and to pay off financial debt.

“Individuals” bought USD 179 million on a net basis, basically for expenses made with cards for consumption with non-resident suppliers (about USD 103 million, showing an increase of 20% compared to the previous month, in the context of the continuity of the COVID-19 pandemic) and for hoarding (USD 49 million in banknotes, with an increase of 5% compared to the previous month and a decrease of 89% year-on-year).

The “Institutional Investors and Others” sector, both resident and non-resident, made net sales in the month of USD 11 million.

The foreign exchange current account, which includes net flows from net exports of goods and services and primary and secondary income, registered a surplus of USD 1,727 million, marking the highest record observed since May 2012. This result was mainly explained by the positive net result for “Goods” for USD 2,365 million, partially offset by net purchases for “Primary income” and “Services”.

The foreign exchange financial account of the “Non-Financial Private Sector” had a deficit of USD 316 million in the month, highlighting the net cancellations of financial debt for USD 296 million.

The operations of the foreign exchange financial account of the “Financial Sector” resulted in a deficit of USD 260 million, basically explained by the increase in the liquid foreign assets of the entities that make up the General Exchange Position (PGC).

The operations of the foreign exchange financial account of the “General Government and BCRA” resulted in a deficit of USD 104 million, mainly explained by the net cancellation of financial debt.