Argentina’s Central Bank reserves up after IMF disbursements
Argentina’s Central Bank (BCRA) reserves went up this week after the International Monetary Fund (IMF) agreed to disburse nearly US$ 6 billion following a successful review of the South American country’s third-quarter targets. Thus, the BCRA reserves went up from US$ 39.052 billion to US$ 43.263 billion in the last 24 hours.
The IMF Board Thursday approved the third-quarter targets of the extended facilities agreement with Argentina and ordered the immediate disbursement of 4.5 billion SDRs, tantamount to almost US$ 6 billion, the multinational agency said in a statement.
Since the last agreement was signed in March this year, the organization disbursed around US$ 23.5 billion, most of which was destined to the maturities for debt contracted under former President Mauricio Macri for a total amount of US$ 45 billion.
Tighter macroeconomic policies since July are beginning to bear fruit: inflation is moderating, the trade balance is improving and reserve coverage is gradually strengthening, the IMF’s statement read while pointing out that in a more challenging external and domestic context, decisive implementation of the program will be critical to safeguard stability and program objectives.
According to the IMF, all quantitative performance criteria were met until the end of September 2022, thanks to the prudent macroeconomic management of the new economic team.
The IMF also announced that waivers associated with the introduction of policy measures that resulted in new exchange rate restrictions and multiple currency practices were approved.
Continued decisive policy actions are beginning to bear fruit. In a more challenging external and domestic context, determined policy implementation, including the tightening of fiscal and monetary policies, is leading to a reduction in inflation, as well as improvements in the trade balance and reserve coverage, said IMF Acting Managing Director Gita Gopinath, who also pointed out that given the macroeconomic imbalances and the fragile conditions of the Argentine economy, a firm implementation of the program will allow it to function as an anchor for stability.
The extended facilities agreement provides access to SDR 31,914 million (equivalent to SDR 44 billion, or about 1,000% of quota) over 30 months, following its approval on March 25, to be delivered in the form of a loan of SDR 1,000 million (equivalent to about 1,000% of quota).