(Bloomberg) — Argentina's central bank on Thursday sold the most foreign reserves in a single day since October 2019, as authorities eliminated key taxes on imported goods and businesses increased demand for dollars. did.
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The country sold $599 million of foreign exchange reserves, monetary authorities said in a post on X. Most of the sales were made to meet the needs of Argentina's auto industry, which pays foreign suppliers in dollars, the central bank spokesperson added.
The sale exposed some flaws in President Javier Millay's campaign to rebuild a war chest of foreign exchange reserves that are essential to finally lifting capital and currency controls next year. The buffer is money they can't afford to lose as international bond payments are set to jump to about $9 billion in 2025, half of which is due in January.
Central bank policymakers added in a separate emailed statement that they are aiming for a more flexible monetary policy in 2025, adding that a policy known as a crawling peg could limit the peso's depreciation on a monthly basis. He said he is keen to adjust the pace. Inflation will cool further.
Officials also said a new agreement with the International Monetary Fund and private financing could help accelerate the removal of capital and currency controls, but the report does not provide more specifics on policy changes beyond next year. The exact timing was not disclosed.
The peso, traded on Argentina's parallel market known as blue chip swaps, fell about 1.6% on Thursday to 1,193 pesos to the dollar.
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