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, within the framework of the continuity of the contractionary bias of monetary conditions and the process of dismantling the stock of LEBAC, the Central Bank made net spot sales in the foreign exchange market for US$ 1,988 million, which, in addition to those made by the entities for US$ 165 million and by the public sector for about US$ 70 million, were acquired by private sector clients for US$ 2,220 million. In addition, the monetary authority made direct sales to the National Treasury for US$ 987 million.

Within the private sector, the main buyers of foreign currency in net terms were “Institutional investors and others” with US$ 1,700 million, followed by the net purchases of “Individuals”, basically for hoarding banknotes and trips abroad, for about US$ 1,200 million, the lowest level since the flexibility of the exchange market, and those of “Others in the real sector” for US$ 700 million. flows that were partially offset by net sales of the “Oilseeds and cereals” sector for about US$ 1,400 million. The reduction in net purchases by “individuals”, from a level of US$ 2,000 million in August, occurred after the jump in the exchange rate at the end of that month.

The volume traded in the foreign exchange market totaled US$ 38,246 million, a level that presented a 7% drop in the year-on-year comparison.

The operations recorded in the current account of the foreign exchange balance resulted in a surplus of US$ 106 million, with surpluses in the “Goods” and “Secondary income” accounts of US$ 891 million and US$ 15 million, and deficits in the “Primary income” and “Services” accounts of US$ 440 million and US$ 359 million, respectively.

The deficit of the capital and financial account of the “Non-Financial Private Sector” of US$ 3,441 million was explained by the expenditures recorded by the formation of foreign assets of residents, by the net repatriations by investments of non-residents and by the net outflow of securities in the secondary market.

The operations of the capital and financial account of the “Financial Sector” resulted in a deficit of US$ 407 million, while the movements of foreign currency of the public sector and BCRA were practically neutral.

With these movements, the BCRA’s international reserves decreased by US$ 3,654 million during the month, closing at a level of US$ 49,003 million.

At the end of September, the BCRA announced the implementation of a new monetary program. This new scheme, in force since October 1, defines zones of non-intervention and foreign exchange intervention. Initially, the non-intervention zone corresponds to exchange rates between 34 and 44 pesos per dollar, which is updated daily at 3% per month. In the first weeks of October, the exchange rate had a mostly downward path, always within the BCRA’s non-intervention zone.