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 September.

Main aspects

In September 2016, 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 deficit of US$ 311 million, showing a lower net outflow of about US$ 1,700 million compared to the deficit of around US$ 2,000 million observed in the same month of the previous year and of about US$ 200 million when compared to the negative result of around US$ 500 million in August.

Operations corresponding to freely available foreign assets of the non-financial private sector totaled US$ 1,074 million and the net outflow from services, rents and other current transfers was around US$ 1,200 million. These net demand factors were partially offset by local and foreign debt liquidations of about US$ 1,300 million, investments by non-residents of about US$ 310 million and net income from goods of US$ 306 million.

The volume traded in the MULC totaled US$ 28,928 million (US$ 1,315 million on a daily average), with a participation of the operation between authorized entities and their clients of 68% of the total operated.  With no net intervention by the BCRA in the foreign exchange market, as in August, the entities were the ones who covered the needs of customers, either through the sale of their own holdings or the granting of loans in foreign currency.

The National Treasury had maturities of Bills issued during this year for about US$ 1,200 million, which it managed to meet practically in its entirety with new placements. In addition, the National Public Sector made principal and interest payments to international organizations and holders of other securities denominated in foreign currency for about US$ 600 million.

The operations of the current account of the exchange balance of September resulted in net outflows of funds of US$ 1,148 million, showing a reduction of 47% compared to the previous year’s deficit of US$ 2,166 million, mainly explained by the reversal of net flows by goods.

The oilseeds, oils and cereals sector settled collections of exports of goods for US$ 1,998 million, presenting an increase of 46% compared to the same month in 2015.

Payments for imports of goods totaled US$ 4,385 million, with year-on-year falls in practically all sectors, with the exception of the automotive industry.

The capital and financial account of the foreign exchange balance registered a deficit of US$ 126 million, as a result of net expenditures of the non-financial private sector for US$ 356 million and the public sector and BCRA for US$ 172 million. These expenditures were partially offset by net income from the financial sector of US$ 138 million.

As a result, the BCRA’s gross international reserves fell by US$ 1,248 million in September, ending the month with a stock of US$ 29,902 million.