BCRA Reserves grow US$153M

Wednesday, December 24, 2014

Reserves grow US$153M

People walk past the Central Bank headquarters in downtown Buenos Aires.

Central Bank chief celebrates ‘calm’ end of year

The Central Bank’s foreign reserves increased again yesterday, rising US$153 million to close at US$31.072 billion, breaking the psychological barrier of US$31 billion and achieving its highest level since November 2013.

Central Bank Governor Alejandro Vanoli celebrated the increase, expressing satisfaction that the monetary authority was ending the year on a “calm” note.

The Cental Bank bought US$100 million yesterday in the market and used US$66 million to pay for energy imports, as well as a smaller payment for imports by technology companies in Tierra del Fuego. Dollars brought in by grain exporters helped foreign reserves to grow.

“We achieved a calm end of the year with US$31.072 billion in foreign reserves. I wish everybody a happy 2015,” Vanoli wrote yesterday in his Twitter account.

Central Bank’s foreign reserves have grown US$2.141 billion — or 7.4 percent — so far this month, compared to the US$28.931 billion registered in November 28. The result is also positive when looking at the annual results as a US$473 million — 1.5 percent — increase has been registered so far this year. Since the foreign currency restrictions started in October 2011, reserves have dropped US$16.4 billion — or 34.6 percent.

The increase in foreign reserves was achieved in large part due to the third tranche of the currency swap with China and due to the higher amount of dollars brought in by agriculture exporters.

A total of US$501.7 million of grain was exported on the week ending on December 19, marking a 17.3 percent increase from the same period last year, and 44 percent more when compared to last week’s US$349 million, according to figures released by the CIARA-CEC chamber of grain exporters.

‘Blue’ dollar goes up

The annual tradition of a higher exchange rate of the “blue” or illegal dollar during periods of high tourist activity appears to be on track to continue again this year as the currency rose 20 cents yesterday and closed at 13.38 pesos, the highest level since November 20 when it was sold at 13.50 pesos.

The currency accumulates a 28 cents increase in two days as tourists in need for dollars and workers who were paid the Christmas bonus flooded the market, traders told Ámbito.com. Meanwhile, the blue-chip swap dropped two cents and closed at 11.23, the same level it registered in August, and the official dollar remained stable at 8.56 pesos thanks to the intervention of the Central Bank in the market.

The Merval benchmark stock index rose 2.7 percent and closed at 8,373 points with a low 166 million pesos traded due to the impending holidays. The index accumulates a 5.8 percent growth so far this week after the steep drops it registered last week. It has declined 14 percent so far this month.

Indupa led the growth with a 10 percent increase, followed by Petrolera del Cono Sur (8.75 percent), Aluar (7.1 percent), Siderar (5.6 percent), and Comercial del Plata (4.9 percent).

Herald with Télam, DyN, online media