Main aspects
October was a heterogeneous month due to the regulatory changes introduced in the foreign exchange market. Until the elections, the private sector was a net buyer of foreign currency, to the point that the Central Bank sold USD 4,348 million to cover demand. After the issuance of Communication A 6815, the private sector became a net seller in the foreign exchange market. The BCRA bought USD 1,925 million between October 28 and November 20.
Real sector companies were net sellers of foreign currency for USD 256 million in October.
Within that group, the main sector with net supply in historical terms, “Oilseeds and cereals”, had net sales of USD 1,560 million, registering an increase of 24% compared to October 2018.
Companies in the “Real Non-Oilseeds and Cereals Sector” made net purchases of USD 1,305 million, mainly to make net payments for goods and services, and to pay off local loans in foreign currency, partially offset by sales of foreign assets.
“Individuals”, which basically demand foreign currency for hoarding and trips abroad, bought USD 4,285 million net (USD 3,920 million for banknotes and USD 365 million for the rest of their operations).
“Institutional and other investors,” both resident and non-resident, made net sales in the month of USD 14 million.
In addition to purchases in the spot market, entities authorized to operate in foreign exchange made net forward sales in foreign currency for USD 151 million.
The National Treasury made principal and interest payments on debt for USD 1,788 million, highlighting payments to International Organizations for USD 942 million and disbursements for LETES for USD 846 million. On the other hand, it recorded debt income of USD 167 million corresponding to International Organizations.
Gross international reserves ended October at a stock of USD 43,260 million.
