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Argentina Pays $1 Billion Bopreal Tranche as Treasury Taps Local Dollars With New AO27 Bond

The central bank is deploying part of this year’s FX purchases to cover near‑term debts, highlighting that net reserves remain negative despite recent gains.

Overview

  • - The Central Bank settled roughly US$1.0 billion today for the second Bopreal Series 3 amortization, postponed from February 28 to the next business day, using international reserves.
  • - Year to date, the Central Bank has bought around US$2.7 billion in the FX market, lifting gross reserves, but net reserves remain about –US$2.5 billion given short‑term dollar liabilities and debt service.
  • - The Treasury’s new local‑law dollar bond AO27 raised US$250 million in its first sale at a 5.89% yield, with biweekly placements of up to US$250 million targeting a US$2 billion cap to prepare for roughly US$4.2 billion due in July.
  • - In the latest peso auction, the Treasury rolled over less than 100% (AR$6.7 trillion placed vs AR$7.2 trillion maturing), as demand concentrated in shorter‑tenor instruments.
  • - External risk appetite remains cautious, with Argentina’s JPMorgan EMBI near 560–572 basis points, and March brings an estimated US$837 million in multilateral and bilateral payments plus about US$540 million in provincial bond maturities.