Retail savers bought $274 million in April, mainly for travel expenses and other consumption made with cards with non-resident suppliers. This was reflected in the latest exchange balance report of the Central Bank. In the document, the entity highlighted that International reserves increased by 451 million during April, ending the month at a level of 27,578 million.
The report details that during April the entities’ clients sold 2.9 billion in the exchange market and the entities sold 404 million. For its part, the BCRA purchased 3,347 million and made net payments through the Local Currency Payment System (SML) for 43 million. In turn, the National Treasury made direct purchases from the BCRA for 468 million.
The document points out that the “Non-Financial Private Sector” was a net seller of foreign currency for 3,061 million in the exchange market. Within that group, The “Oilseeds and Cereals” sector was once again the main sector providing foreign currency, registering net income of 1,762 million, largely explained by its result in the “Goods” category. In turn, the “Real Sector excluding Oilseeds and Cereals” sector recorded net income of 1.52 billion.
As for the international reserves, the increase was mainly explained by the BCRA’s net purchases in the exchange market and due to the increase in the price in US dollars of the assets that make up the reserves for 188 million.
All this was partially offset by the gross capital payments to the International Monetary Fund for 1927 (1,462 million SDR) and net capital payments to international organizations (excluding the IMF) for 621 million. Also due to the drop in foreign currency holdings of entities in the BCRA for 513 million, and for the net payments made by the BCRA through the Local Currency Payment System (SML) for 42 million.
The Central Bank report also states that “in line with what was decided by the authorities and announced in the monetary and exchange policy objectives and plans for 2024, a zero monetary financing goal for the National Treasury for 2024.” He adds that “in May the BCRA continued with the BOPREAL auctions, having already awarded all of the 3 series, for the equivalent of 5 billion dollars, 2 billion and 3 billion, respectively.”
Starting in May, the participation in the subscription of BOPREAL to legal entities that would like to distribute profits and dividends to non-resident shareholders, which totaled an equivalent figure of 1,682 million.
Regarding the international level, the entity added in the exchange balance report that “the world economy is growing at a modest pace, but with favorable prospects. Tight monetary conditions continue to have an impact, especially on credit and construction marketsat the same time that a faster than expected fall in inflation is evident, so the confidence of the private sector would be strengthening.”
