From Ambito · · 1m 10s
BCRA Buys Most Dolar in 3 Weeks
BCRA's largest dollar purchase in over three weeks boosts reserves despite gold price drop.
In brief
BCRA's largest dollar purchase in over three weeks boosts reserves despite gold price drop. Argentina's central bank bought $103 million in dollars, increasing reserves to $183 million in November but gold prices fell 2.8% causing a $225 million loss. Originally reported by Ambito.
BCRA's Largest Dollar Purchase
The BCRA conducted its largest dollar purchase in over three weeks on Thursday, November 12, buying u$s103 million in the official exchange market.
Reserves Drop Due to Gold
International reserves fell u$s257 million to u$s49.073 million as gold prices dropped 2.80%.
Gold Price Impact
The gold price drop caused an estimated u$s225 million loss in international assets.
Dollar Market Moves
The dollar index rose 0.65%, while the euro, pound, and yen all declined.
Dollar Market Activity
The dollar market saw a rise of $1.50, closing at $1.545,50 after a holiday-affected session.
Reserves Strategy
The BCRA may use dollar-linked instruments to meet coverage demand without selling dollars directly.
Future Challenges
High financing costs and external payments could reduce the BCRA's ability to build sustained reserves.
The main idea
Argentina's central bank bought $103 million in dollars, increasing reserves to $183 million in November but gold prices fell 2.8% causing a $225 million loss.
