Today the BCRA has paid off USD2.5 billion to the Bank for International Settlements (BIS).
As regards the early repayment of USD5 billion for repos with international banks, the BCRA decided to open a cheaper line of credit with the BIS by the end of July this year for gaining extra liquidity, which may make room for maneuver over the second half of the year.
Since then, the stock of international reserves has grown in excess of USD8 billion. The BCRA has decided against renewing this facility in light of Argentina’s strengthened international reserves and the potential inflow of foreign currency as under the Law for Disclosing Foreign Assets. Regardless of its reimbursement, this facility will still be an available tool to cope with external shocks.
Thus, the BCRA has gradually improved the quality of its balance sheet by reducing the cost of international indebtedness and by adopting relaxing measures to implement its monetary and foreign exchange policy in an effective fashion.
