With the net reserves of the Central Bank at US$ 10,000 million, Argentina secures the funds to meet debts until 2027

This is a consequence of the Central Bank itself announcing that it renewed the maturities of US$6 billion that it had with international banks. These debts, known as “repos”, were due between October 2026 and April 2027, and have now been extended until September 2028.

In a statement, the Central reported that the operation was carried out with 10 banks at a guaranteed overnight financing rate – known as SOFR – plus 4% (equivalent to around 7.7% today) and that Bonares were used as collateral.

With this, the BCRA will have a wider margin for intervention. “This measure strengthens its liquidity position in foreign currency and improves the predictability of its foreign currency flow, favoring an orderly functioning of the local exchange market,” the monetary authority explained in a statement.

“As a consequence of this operation, our measurement of net reserves, which subtracts all foreign currency liabilities of the BCRA with less than 1 year of remaining term (except for deposits in Treasury Dollars, which we do not subtract)becomes positive by US$ 10,000 million”, the consulting firm 1816 reported.

In any case, net reserves will decrease again with the payment of Globales and Bonares next week (for about US$ 4.5 billion), but that will be compensated very soon with the debt operation guaranteed by international organizations.

1816 also clarifies that the measurement of net reserves made by the Monetary Fund to measure the goals of the agreement with Argentina subtracts all the organization’s disbursements, only contemplates BCRA liabilities with an original term of less than one year (regardless of the remaining term) and takes December 2025 prices to value assets and liabilities of the Central.

This calculation is not modified by the rollover of the repos (which had an original term greater than one year), so it continues to be negative in US$4.2 billion.

The reservations were a headache for the current and previous governments. But this year, hand in hand with a greater income of foreign currency from exports and the placements of private debts that are settled before the Central Bank, the climate changed.

Part of the change focuses on the fact that the Government modified its strategy and began to buy foreign currency, to the point that so far this year it has pocketed almost US$11.3 billion. This allowed us to exceed the reserve goal that had been established in the agreement with the IMF for June by US$3.7 billion, and the country is barely US$800 million away from meeting the annual goal, which required adding US$8 billion throughout 2026.

“The main thing with the repo rollover sequence is that it just confirms that “Argentina will face the next election year without risk of non-compliance with its debt maturities in foreign currency.”points out 1816.

At the beginning of his government, Javier Milei received the Central Bank with negative net reserves of US$ 11,000 million. In the remainder of this mandate, between the Treasury and the BCRA, they must pay the private sector and the IMF about US$24 billion.

Of that amount, between US$4,000 and US$5,000 million will be contributed by international banks, which reduces the balance to between US$19,000 and US$20,000 million.

With net reserves at US$10 billionplus the purchases that the Central has been making daily and that already exceed US$ 11,000 million so far this year “we can now affirm without risk of being wrong that The next administration will receive a country fulfilling its external commitments and with a stock of net reserves higher than that received by the current administration,” states 1816.

To convince the market that the horizon is clear, the economic team announced on Friday that next Monday Minister Luis Caputo will present the financing program to cover maturities until the end of the mandate.