As highlighted in a report, Quantum consulting“the monetary, exchange rate and financing policy of the BCRA to the Treasury implemented in the last four months had a significant impact on the balance sheet of the BCRA, which“That shows a notable improvement.”
The report details that the Total assets measured in official dollars, went from US$223,743 million on December 10, 2023 to US$207,953 million on April 23, 2024with a drop of US$15.79 billion.
But the Total liabilities fell much more, registering a variation of US$46,379 million. They went from US$189,057 million to US$142,678 million.
“The combination of the effects of devaluation, the revaluation of Treasury securities in portfolio of the BCRA, the net purchase of foreign currency and the policy of decreasing rates “were some of the factors that generated the improvement in their assets,” says the consultant who directed by economist Daniel Marx.
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The report details that during the period analyzed “The net accounting equity of the BCRA went from US$34,686 million to US$65,275 million.”
The report maintains that the improvement is solid. Such would be the case that, according to the report, sIf certain assets were excluded from the account, the BCRA would also have a positive balance.
These are the so-called Non-transferable Treasury Bills, which actually function as a cash voucher that the government has left to the entity to withdraw dollars from reserves. That is why for many economists it can be considered that they have no value, because it is an intra-state debt that cannot be negotiated in secondary markets.-
“If the holdings of non-transferable Treasury Bills (recorded at their nominal value of US$69,221 million) will be valued at zero improvement is still maintained and the ‘adjusted’ net worth would, in the period under analysis, from being negative by US$32,697 million to being negative by US$3,946 million”, explains the report
According to Quantum, the balance of the BCRA has moved as follows since the new authorities arrived:
Assets and liabilities in dollars
- Assets: the total in dollars went from US$99,218 million to US$114,188 million due to the purchase of international reserves for US$8,671 million and the improvement in the prices of public securities, an effect that had a positive impact on its accounting valuation, which we estimate to be greater than US$4,000 million.
- Liabilities: increased by US$831 million despite the BCRA issuing BOPREAL to address the stock of arrears and financing for imports. This is because the debt of US$3,000 million with the Bank of Basel was canceled and liquidity in dollars decreased due to the deposits in that currency that the banks have in the BCRA by US$448 million.
Assets and liabilities in pesos
- Assets: the total fell by the equivalent of US$36,943 million due to the impact of the devaluation on the stock of Transitory Advances for US$6,549 million equivalent and other assets for US$11,033 million.
- Liabilities: the total in pesos was reduced by the equivalent of US$47,210 million, initially affected by the devaluation of the monetary base stock with an impact of US$12,564 million and the liabilities remunerated in pesos, which fell by US$27 .470 million equivalent. Liabilities remunerated in pesos went from 9.2% of GDP to 7% of GDP in April.
