The Central Bank of the Argentine Republic (BCRA) reported this Friday that it had obtained a loan of 1,000 million dollars (about 970 million euros) through the signing of a passive repos agreement (REPO) with a group of five international banks: BBVA, Santander, JP Morgan, ICBC and Citi.
“The Central Bank of the Argentine Republic (BCRA) arranged with five leading international banks a passive repos operation (REPO) with BOPREAL Series 1-D securities for the total tendered amount of USD 1,000 million and a final term of 2 years and 4 months,” the entity explained in a statement.
This operation, the BCRA has highlighted, “reinforces the process of normalization of access to credit markets, in line with the fall in country risk”.
The BCRA has highlighted that this new REPO tool will allow it to better manage its liquidity in foreign currency, with a price that is expected to be lower than previous options. Besides, They have pointed out that it increases “the flexibility to mitigate imbalances that may exist between the supply and demand of foreign exchange in the local exchange market.”
“In this way, the BCRA reduces the risks surrounding the implementation of its exchange and monetary policy objectives, and facilitates the anchoring of economic expectations,” they have detailed.
With this agreement, The BCRA intends to normalize international trade payments in 2024 and “move towards the objective of completely lifting, without financial or economic disruptions, the exchange restrictions and other regulations implemented in previous years.”
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