Day: June 1, 2020

Change in asset valuation allows BCRA to present earnings of $23.4 mn in 2019

Argentina’s Central Bank (BCRA) inflated its balance sheet with a change in asset valuation. The valuation methodology of the securities was previously valued according to their market value but now it is according to their nominal value. The modification allowed the Central Bank’s balance sheet to increase from AR$0.58 billion pesos ($8.48 mn) in profits in 2018 to AR$1.6 billion ($23.4 mn) in 2019.

International reserves fall $979 mn in May and BCRA imposes restrictions on the dollar

As of today, savers who want to acquire the 200 dollars per month allowed by the Central Bank must present a sworn statement in which they will state that they have not operated in cash with liquidation or MEP in the last ninety days. They must also commit not to carry out this type of operation for the following 90 calendar days. It implies an acknowledgement that there are no dollars, and the reserves are minimal. According to official data, international reserves ended May at $42.59 billion, accumulating in May a drop of $979 million.

Debt negotiations: a difference between $4.5bn and $8bn among parties

Between 1 and 2 points of the Gross Domestic Product ($4.5 bn and $8 bn), is the difference between one calculation and the other. Another difference is the potential inclusion of a GDP coupon (or similar prize), for bondholders accepting the final proposal. It is the picture of the new stage in the battle between the Government and creditors with public securities issued under international law.