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.
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.
The Chamber of the Oil Industry (CIARA) and the Center of Grain Exporters (CEC), which represent a third of exports, has recorded in the first four months of 2020 a foreign currency settlement of $5.018 billion, which is 17.8% less than the same period in 2019.
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.
According to data from the INDEC, the increase was 5% and reached a record 32.3 million tons, with wheat, corn and peanuts leading the way. Agro-industrial exports between January and April 2020, totalled $8.4 billion, 1% below the income reported the previous year.