BCRA keeps buying dollars and has already added up to USD 900 million in January

The Central Bank of the Argentine Republic continues to consolidate the path of monetary order and strengthening of reserves driven by the national government. On Thursday, the monetary authority purchased USD 80 million in the foreign exchange market and raised the total accumulated in January to more than USD 900 million, thus chaining together fourteen consecutive sessions with a net buying balance.

With this dynamic, gross reserves reached USD 45.399 billion, after a daily increase of USD 322 million, which represents the highest level since September 2021. The figure confirms the positive impact of the new economic framework based on fiscal discipline, control of money issuance, and exchange rate predictability.

In addition to purchases in the Free Foreign Exchange Market (MLC), another relevant factor that explains the improvement in the stock of reserves is the increase in the international price of gold. The Central Bank holds approximately 1.98 million troy ounces, whose valuation exceeded USD 4,900 per unit in the last session, providing additional backing to the institution's balance sheet.

Since the beginning of the year, BCRA has maintained an operating limit that allows it to purchase up to 5% of the volume traded daily in the MLC, with the objective of preserving market stability. On some specific days, that threshold was exceeded, which private analysts attribute to operations carried out outside the formal market, without altering the overall functioning of the system.

In parallel, the wholesale exchange rate continued its downward trend and closed at $1,429.50, with a 0.1% decrease. This way, the wholesale dollar stood at its lowest value since November, widening the distance from the ceiling of the exchange rate band set at $1,553.58. That 8.7% gap with respect to the upper limit is the widest since October and reinforces the signal of exchange rate stability.

President Javier Milei recently defended the band scheme adjusted for inflation in an interview with Bloomberg, emphasizing that it is a transitional regime toward a free-floating system. As he explained, the bands will disappear once the excess liquidity is absorbed and inflation converges to international standards.

In terms of financing, Milei stressed that Argentina doesn't face external urgencies thanks to fiscal balance and the payment of interest with surplus. In the same vein, Economy Minister Luis Caputo is promoting the strengthening of the local capital market in order to reduce dependence on external indebtedness.

Looking ahead, the challenge will be to sustain the accumulation of reserves and continue reducing country risk, which is currently around 554 basis points. If that trend deepens and breaks through the 500-point threshold, the government will have better conditions to face upcoming debt maturities and definitively consolidate macroeconomic stability.