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 July.

Main aspects

During July, the BCRA’s international reserves increased by USD 145 million, ending the month at a level of USD 43,386 million.

Continuing within the context of the COVID-19 pandemic, with impacts on both the global and local level of activity, trade flows and capital movements, in parallel with the progress in the negotiations for the restructuring of the public external debt and the regulatory modifications implemented through Communication “A” 7030 and its subsequent amendments, in July, the customers of the entities and the latter bought USD 592 million and USD 8 million in the foreign exchange market, respectively, totaling USD 600 million that were sold by the BCRA.

The real sector was a net seller of foreign currency for USD 609 million.

Within this group, the main sector in terms of historical net sales, “Oilseeds and Cereals”, recorded net revenues of USD 1,976 million, with a reduction of 17% compared to those recorded in the same period of 2019. For the second consecutive month, revenues were in line with the estimate of exports of goods in the sector, which would imply that the sector stopped the cancellation of debt that it evidenced in the first 5 months of the year, and that led to its level of indebtedness being at an all-time low.

The “Real Sector excluding Oilseeds and Cereals”, on the other hand, was a net buyer in the market with a total of USD 1,367 million, with an increase in its net purchases of about USD 1,000 million compared to the previous month. These purchases were mainly intended to make net payments for goods and services, and to pay off financial debt.

“Individuals” bought USD 876 million net, basically for hoarding (USD 740 million), and for expenses made with cards for consumption abroad (about USD 130 million, with a 74% year-on-year drop, in a context of border closures due to the COVID-19 pandemic).

The “Institutional investors and others” sector, both resident and non-resident, made net purchases in the month for USD 194 million.

The foreign exchange current account, which includes the net result of foreign exchange operations recorded as net exports of goods and services, and primary and secondary income in line with the definitions of the Balance of Payments, registered a surplus of USD 555 million, explained by the net income from “Goods” and “Secondary income”.

The financial account of the “Non-Financial Private Sector” had a deficit of USD 1,225 million, as a result of the net cancellations of financial debt and the formation of foreign assets.

The operations of the foreign exchange financial account of the “Financial Sector” resulted in a deficit of USD 369 million, explained by an increase in the liquid foreign assets of the entities that make up the General Exchange Position (PGC) and by cancellations of financial loans and lines of credit.

The operations of the foreign exchange financial account of the “General Government and BCRA” resulted in a deficit of USD 78 million, mainly explained by the net cancellations of financial debts with multilateral credit organizations and others.