Wednesday , June 16 2021

The rule is the exception ?: Treasury is sold to BCRA



That the IMF can close its eyes to "some things" does not mean that the government has too much room to maneuver to not comply with the agreement. It turns out that on the last business day of 2018 the Central Bank registered a purchase of foreign currency to the Treasury for the equivalent of US $ 43,699 million (at the day's exchange rate would be about US $ 1,156 million). It is worth remembering that the IMF sent the third and last disbursement of the year (US $ 7,627 million) in the Christmas prepayment. While analysts are not surprised that the Treasury has used part of the Fund's currencies to cover the fiscal deficit and thus close the year, this has generated some noise the way it happened. Because it had been agreed with the Fund that, in case the Treasury needed to make weights in exchange for foreign currency, to meet current expenses, auctions would be held to avoid discretion.


Source link