In December, companies in the real sector were net sellers of foreign currency for about US$ 1,500 million.
Within that group, the main sector with net supply in historical terms, “Oilseeds and cereals”, had net sales of about US$ 1,400 million, with a year-on-year decrease of 15%.
Companies in the “Real Non-Agricultural Sector” made net sales of about US$ 100 million. This result contrasts with December 2017, when net purchases of US$ 1,850 million were recorded. The difference is partly explained by the slowdown in imports in recent months, and partly by sales to fund December’s liquidity needs.
“Individuals”, who basically demand foreign currency for hoarding and trips abroad, bought about US$ 800 million on a net basis (a 70% decrease compared to purchases of US$ 2,700 in December 2017), an amount that continued to be among the lowest since the relaxation of foreign exchange regulations in December 2015. The increase compared to November can be explained both by the greater hoarding of families derived from the collection of the complementary annual salary and by the purchases made for vacations abroad.
“Institutional and other investors,” both resident and nonresident, made net purchases of about $150 million. This level of purchases represented less than 10% of the average monthly net outflow they had from the April-September period of exchange rate instability.
The entities bought some US$ 750 million from their customers in the foreign exchange market, used their own funds for primary subscriptions of securities for about US$ 400 million and entered loans from abroad for US$ 150 million. These operations, together with the increase in deposits and the cancellation of local customer loans, explain the increase in their holdings of foreign currency, both in their General Exchange Position (PGC) and in their accounts with the BCRA.
Since the exchange rate never left the “non-intervention zone,” the BCRA did not intervene in the foreign exchange market. The inflow of funds of US$ 8,700 million for the extension of the swap with the Bank of the People’s Republic of China was highlighted in the month.
The General Government recorded the income from the disbursement of the third tranche of the stand-by agreement with the IMF for US$ 7,640 million and net income with other international organizations for almost US$ 1,000 million. It also made net payments of principal and interest on debt securities for US$ 3,500 million.
As a result of the aforementioned movements, gross international reserves increased by US$ 14,613 million during December, ending the month at a stock of US$ 65,806 million.
