Day: October 25, 2019

Argentina’s Central Bank spent huge amount of dollars without being able to stop the bank run

The dollar closed the week at 65 pesos which marked a rise of 1.66 pesos and a week accumulated increase of 4.27 pesos. The Central Bank once again squandered international reserves by offering $220 million in different auctions and through direct sales. Nearly $600 million were sacrificed in one day. The reserves ended at $43.5 billion which implied a daily fall of an impressive amount of $1.75 billion.

Deposits withdrawals went up to almost $500 million per day

Friday closes a chapter before Sunday’s general election. On Monday, a new chapter can bring some temporary calm. In the last 48 hours, deposit withdrawals went up to almost $500 million per day, which meant a decrease in reserves of around $250 million. It was the opposite effect to the promise of not affecting deposits in dollars if he is elected, made by the main opposition presidential candidate, Alberto Fernandez.