In a context of deepening turbulence in the international financial markets, operations in the Single and Free Exchange Market (MULC) in the third quarter of 2008 showed a deficit of US$ 181 million, reflecting a substantial improvement over the negative result of US$ 3,600 million recorded during the second quarter of the year.
The actions of the Central Bank, in line with what was done in the previous quarter, together with the countercyclical policies adopted in recent years, made it possible to cushion the impact of the global financial crisis on the local foreign exchange market in the period.
Within the framework of the managed floating exchange rate policy, the Central Bank continued to operate in the foreign exchange market. Foreign exchange purchase and sales operations in the MULC yielded a total of net purchases of US$ 1,300 million in the quarter. In addition, the BCRA made net purchases of securities with settlement in foreign currency for approximately US$ 1,300 million. Consequently, with a neutral balance with respect to the use of international reserves, the BCRA continued to balance the exchange market, providing stability in the exchange market.
The current account balance of the exchange balance totaled US$ 4,953 million, reaching a record surplus for the second consecutive quarter and practically doubling the levels of the third quarter of 2007.
Collections of exports of goods also reached a record value of US$ 19,143 million, reflecting a year-on-year growth of 39%. Likewise, payments for imports of goods registered a new maximum for the MULC of US$ 13,649 million, showing a year-on-year increase of 28%.
The operations of the foreign exchange capital and financial account showed a deficit of US$ 5,003 million, with decreases in the negative balance of non-financial private sector operations with respect to the deficit of the previous quarter. This lower outflow of about US$ 3,000 million was basically explained by the lower net demand for foreign assets and by the higher net disbursements of financial loans. Likewise, income from direct investments by non-residents in the private sector of the local economy continued, reaching an amount of US$ 760 million.
The BCRA’s international reserves ended the quarter at US$ 47,121 million, a practically stable level compared to the end of the previous quarter, reflecting a variation of -0.8%. This stock of reserves remained at historically high levels, tripling the levels at the end of 2001, quintupling the minimum values observed in mid-2002 and representing an increase of 10 per cent over the levels of September 2007.
