Swollen reserves?

Portada en Ingles

In January 2007, with landing of internal trade secretary Guillermo Moreno in Argentine Statistics and Census Institute (INDEC, in its Spanish acronym), inflation data lost credibility.

Gradually, other variables joined, in tune with Moreno's expansion, like sales in supermarkets, public services use, industrial and economic activity.

Only tax collection and foreign reserves remained immune to Moreno's virus.

However, during the last days, suspicion about the latter variable arose in market, which is increasingly gaining more attention from analysts due to sales of foreign currencies that government is making to control dollar.

To be precise, Argentine Central Bank (BCRA, in its Spanish acronym) carried out swaps transactions with Basel's Bank for International Settlements and with financial entities in New York. Through those swaps, reserves receive dollars and BCRA grants government bonds as guarantee. It's a credit central bank takes.

But, how many swaps has BCRA already made? That's the big question. By taking a look at liabilities with international organizations in BCRA balance sheet, it's possible to deduct that they would reach to $1.2 billion.

Without taking into account this effect, reserves settle below $49 billions.

Makeup is not serious, it's mild. But, is it necessary?

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