The Central Bank of Argentina has purchased $2.048 billion, achieving 20% of its annual currency acquisition goal as part of a new economic strategy in response to IMF requirements.
The Central Bank of Argentina has significantly ramped up its currency purchases, acquiring $2.048 billion over 29 trading days, which represents 20% of the $10 billion it aims to accumulate throughout the year. This shift comes after a year of dwindling reserves in 2025, during which the Central Bank refrained from intervention in the foreign exchange market. The new approach, aligned with the International Monetary Fund's demands, marks a critical pivot in the country's economic policy.
Since January 5, the Central Bank has committed to purchasing up to 5% of daily trading volumes in the foreign exchange market as part of its new strategy. However, much of the dollar purchases have been executed through negotiated 'bulk' transactions with companies and provinces needing to liquidate dollars from their issued debts. This strategic move has allowed the Central Bank to buy more dollars than it would have through traditional market transactions, stabilizing its reserves while aiming to maintain the dollar's value.
By repositioning its intervention strategy, the Central Bank under the leadership of Santiago Bausili seeks to enhance Argentina's foreign reserves while adhering to IMF guidelines. This proactive approach signals an intent to stabilize the economy amidst ongoing financial challenges, aiming not only to balance the currency's value but also to secure a more robust economic foundation for the year ahead.
