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Argentina’s Dollar Purchases Have Yet to Rebuild Usable Reserves as July $4.2 Billion Test Looms

Most of the central bank’s recent buys were redirected to service public debts, leaving net reserves still negative.

Overview

  • The BCRA has bought roughly US$3.28–3.3 billion since early January, about 33% of its US$10 billion annual goal.
  • Consolidated accumulation with the Treasury is only about US$800 million as dollars were used for obligations including roughly US$800 million to the IMF and about US$1 billion tied to Bopreal.
  • Eco Go estimates net international reserves remain in negative territory, around US$-2.9 billion to US$-3.17 billion depending on methodology.
  • The Treasury purchased about US$3.5 billion from the BCRA so far this year, with roughly US$2 billion used to meet a January bond maturity.
  • With limited access to international markets, officials are weighing bilateral financing as the IMF welcomes some policies but judges the current reserve buildup insufficient, and a US$4.2 billion global bond payment is due on July 9.