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Argentina Secures $3 Billion Repo as Central Bank Rebuilds Reserves Under New FX Bands

The repo shores up near-term dollar liquidity before a $4.2 billion bond payment.

Overview

  • The central bank said it closed a US$3,000 million repo with six international banks for 372 days at an annual equivalent rate of about 7.4%, completing the immediate financing package.
  • Under its 5%‑of‑daily‑volume cap, the BCRA bought US$21 million on Monday, US$83 million on Tuesday, and US$9 million on Wednesday, taking early‑week purchases to US$113 million.
  • Gross reserves climbed to roughly US$44.187 billion, lifted by the FX purchases, market effects, and an estimated US$700 million inflow tied to hydroelectric concessions.
  • Market participants reported Treasury dollar sales in the official market and the government launched rollovers of dollar‑linked debt as it prepared for the January 9 bond maturity.
  • Following the repo announcement, the official and wholesale exchange rates fell, Argentine assets showed mixed moves, and country risk hovered near 566 points, while the participating banks were not named.