The reserves of Argentina's Central Bank soared by $1.348 billion following the transfer of $800 million from the government of Santa Fe, which had been obtained through a bond issuance last December. This significant influx into the Central Bank's reserves came as Santa Fe officials confirmed that the dollars are currently held in the Bank of Santa Fe, contributing to increased liquidity in the national system.

Despite the influx of funds, Santa Fe's government stated that these reserves are not intended to be converted into pesos. Instead, they will be utilized to finance critical infrastructure projects, including the construction of a new bridge connecting Santa Fe and Santo Tomé. This approach aims to leverage the influx of foreign currency to support local development rather than simply bolstering the Central Bank's liquidity.

The past weeks had seen tensions between Governor Maximiliano Pullaro's administration and the national government, particularly following his initial resistance to bringing the dollars into the country. National Economy Minister Luis Caputo had publicly addressed these tensions, indicating that Pullaro's hesitance had financial repercussions resulting in a loss of 120 million pesos due to currency fluctuations. This scenario highlights ongoing economic challenges within Argentina, where local and national financial policies are often at odds.