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 November.

Main aspects

The operations arranged by the entities authorized to operate in foreign exchange with their customers in the Single and Free Exchange Market (MULC) resulted in a surplus of US$ 400 million, showing a reversal of about US$ 2,800 million with respect to the net outflow of US$ 2,364 million observed in the same month of the previous year. and an increase of about US$ 260 million when compared to the result of the immediately previous month.

The surplus with customers in the MULC was basically explained by the net settlements of financial loans for about US$ 1,400 million, goods for US$ 635 million and investments by non-residents, for US$ 313 million. This supply was partially offset by the net demand for freely available foreign assets from the non-financial private sector, which totaled US$ 878 million, and by operations for services and primary and secondary income, which represented a net outflow of US$ 655 million and US$ 395 million, respectively.

The volume traded in the MULC was US$ 44,226 million, a level that registered an increase of 45% in year-on-year terms.

The operations of the current account of the foreign exchange balance resulted in a deficit of US$ 1,088 million, showing a reduction in net outflow of 55% compared to the same month of the previous year, mainly explained by the increase in export collections.

Operations for goods in the foreign exchange balance recorded a net income of US$ 630 million, as a result of export collections of US$ 4,555 million (year-on-year increase of 52%) and import payments of US$ 3,925 million (year-on-year fall of 2%).

The operations of the capital and financial account of the foreign exchange balance registered a surplus of US$ 1,682 million, mainly as a result of the funds corresponding to the net increase in deposits observed by the externalization of funds within the framework of the Fiscal Sincerity Regime.

The Central Bank (BCRA) made net purchases of foreign currency in the MULC for US$ 4 million in the month due to excesses of the General Exchange Position (PGC) of entities, in addition to the net purchases directly from the National Treasury for some US$ 3,200 million that were deposited in the BCRA. Therefore, as observed in October, banks were the ones that absorbed almost all of the surplus with customers in November.

The entities as a whole showed a fall in foreign currency deposits of customers, basically as a result of the movements made by the public sector, partially offset by the increase in deposits from the private sector (the stock of private deposits was around US$ 20,900 at the end of the month, marking a new high since mid-2002).

As a result, in the course of November, the BCRA’s gross international reserves increased by US$ 167 million, ending the month with a stock of US$ 37,378 million.

Finally, on 12.12.16, the BCRA cancelled all the passive pass operations with international banks that it had on its balance sheet, for a value of US$ 1,000 million.