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 May.

Main aspects

The global economy continues to recover, but moderating its pace in the face of the uncertainty associated with the armed conflict between Russia and Ukraine and the increase in benchmark interest rates in the world’s main economies due to the rise in inflation as a result of the increase in global energy and food prices and disruptions in input supply chains. In this context, the BCRA continued to improve foreign exchange regulation in order to promote a more efficient allocation of foreign currency. In May, the entities’ customers sold USD 625 million in the foreign exchange market, which were bought by the BCRA for USD 684 million (which, on the other hand, made net payments through the Local Currency Payment System for USD 86 million) and by the entities for USD 27 million.

The “Real Sector” was a net seller of foreign currency for USD 1,437 million. Within this group, the main sector in terms of net sales in the foreign exchange market, “Oilseeds and cereals”, recorded net revenues of USD 4,284 million, with a year-on-year increase of 11%.

The “Real sector excluding Oilseeds and cereals”, on the other hand, was a net buyer for a total of USD 2,847 million, exhibiting a year-on-year increase of 70%. The purchases were mainly intended to make payments for imports of goods and services, and to pay off financial debt.

The “Individuals” bought USD 492 million net, basically to meet expenses made with cards for consumption with non-resident suppliers and for treasury, for USD 320 million and USD 130 million, respectively.

The “Institutional investors and others” sector, both resident and non-resident, made net purchases in the month for USD 157 million.

The foreign exchange current account, which includes net flows from net exports of goods and services and primary and secondary income, registered a surplus of USD 484 million. This result was explained by the net income from “Goods” of USD 2,015 million, partially offset by the deficit results of “Services” and “Primary income” of USD 867 million and USD 675 million, respectively.

The foreign exchange financial account of the “Non-financial private sector” had a deficit of USD 633 million in the month, highlighting the records for the cancellations of balances in foreign currency with local entities for the use of cards with non-resident suppliers for USD 282 million (which do not entail a net demand for foreign currency). the cancellations of local financial loans for USD 62 million, of loans abroad and debt securities for USD 133 million and with other international organizations for USD 43 million.

The operations of the foreign exchange financial account of the “Financial Sector” resulted in a surplus of USD 83 million, highlighting the fall of USD 39 million in the liquid foreign assets of the entities that make up the General Exchange Position (PGC) and the income of financial loans, debt securities and credit lines of USD 28 million.

On the other hand, the operations of the foreign exchange financial account of the “General Government and BCRA” resulted in a deficit of USD 137 million, mainly due to cancellations of loans with international organizations for USD 164 million.

In May, the BCRA’s international reserves decreased by USD 446 million, ending the month at a level of USD 41,561 million, mainly affected by the impact of the cancellation of principal and interest of the National Government for USD 534 million (including interest payments to the IMF for SDR 272 million, equivalent to USD 364 million), the decrease in the holdings of the entities in the BCRA for USD 180 million, other operations for USD 228 million and for the fall in the price in US dollars of the assets that make up the reserves for USD 287 million. These variations were partially offset by purchases made in the foreign exchange market.