The Financial Conditions Index (ICF) deteriorated by 15.6 points in February

The Financial Conditions Index (ICF), prepared by the Argentine Institute of Finance Executives and the consulting firm Econviews, deteriorated by 15.6 points to -94.1 points. The sub-index of external conditions explained the deterioration of total rate, by falling 12.1 points per month and interrupting five consecutive monthly advances, standing at 22.8 points (comfort zone). The local conditions sub-index deteriorated slightly during the month, the increase in country risk and legislation, added to a more significant expected depreciation explained the worsening. Domestic conditions remained very stressed, at -116.9 points.

BCRA’s International Reserves dropped $56 million

This Monday, the Central Bank of Argentina (BCRA) International Reserves fell $56 million to $44.3 billion. The fall is less than the previous days; last Friday $180 million had been lost, which rounded off a weekly decrease of almost $500 million. The wholesale dollar, which operates in the Single and Free Market (MULC), rose 14 cents to 63.04 pesos, or 0.2%. Due to strict exchange controls, the dollar slid slightly in the proportion set by the BCRA.

Argentine Government Calls for New Swap of $70bn Public Debt

Amid the paralysis caused by the coronavirus and the collapse of the international markets, the Argentine government continues with its strategy to renegotiate the substantial public debt, for about $70 billion, and called for a new exchange for next Thursday. The objective is to alleviate the maturity curve; the Ministry of Economy will place inflation-adjustable bonds with terms of between 1 and 4 years.