In a statement released through the social network X, the Secretary of Finance, Pablo Quirno, reported that the National Treasury will buy Dollars to the Central Bank of the Argentine Republic (BCRA) to clear up any doubts about the country’s ability to meet its financial obligations.
This decision to purchase the Dollars The announcement comes amid growing economic and financial uncertainty. The announcement was made just two minutes before 7:30 p.m., coinciding with the Copa América final between Argentina and Colombia, underlining the urgency and importance of the measure.
The main objective is to reassure markets and investors about the country’s solvency, especially after President Javier Milei and Economy Minister Luis Caputo announced a “zero emissions” policy in recent interviews from the United States.
The “zero emission” policy implies that the Central Bank will not issue more pesos to finance the fiscal deficit, a measure aimed at controlling inflation and stabilising the economy. However, this policy has also raised concerns about the government’s ability to meet its debt obligations, given that the Central Bank’s accumulation of international reserves has been negative in recent months.
To address these concerns, the Ministry of Economy has decided to use part of the financial surplus achieved in the first half of the year, which amounted to 2.3 trillion pesos, to purchase the Dollars necessary for the payment of interest on the Globales and Bonares bonds maturing in January 2025.
In total, 1.528 billion euros will be allocated Dollars to this operation, which will be deposited in the Bank of New York, remaining available only for the payment of interest on the bonds. The move is intended to prevent a negative market reaction to the country’s zero-emissions policy and ensure that investors have confidence in the country’s ability to meet its financial obligations.
Decisions
The decision to deposit the Dollars A trustee also aims to provide greater transparency and security to investors by demonstrating that the funds are available and reserved exclusively for the payment of bond interest.
The announcement has been greeted with a mix of relief and skepticism by economists and financial analysts. Some experts have hailed the move as a necessary step to stabilise the economy and restore confidence in the markets.
