Argentina‘s Central bank Tightens Dollar access Amid Reserve Boost
BUENOS AIRES – argentina’s central Bank (BCRA) moved to curb speculative trading in the official dollar market this week, reinstating a 90-day waiting period for individuals who purchase official US dollars before accessing financial dollar markets like MEP and CCL. the measure comes as the BCRA bolstered its reserves by nearly US $2 billion following substantial Treasury purchases of dollars, including a recent influx of approximately US $7 billion in agricultural foreign currency settlements over three business days.
The BCRA’s action aims to prevent “rulos”-arbitrage opportunities exploiting the gap between official and financial dollar rates-and reduce competition for dollars in the liquidation market. According to a GMA Capital report, the goal is to stabilize the exchange rate and limit distortions. While individuals remain able to purchase dollars for savings within their financial capacity, they are now restricted from promptly using those funds to purchase financial dollars.
Federico Furiase, a close collaborator to Economy Minister Luis Caputo, clarified that the restriction doesn’t impede dollar purchases for savings through the Mercado Libre de Cambios (MLC). “What is not allowed is that with those dollars they supply the financial dollar market,” Furiase stated, emphasizing the intent to avoid market distortions.
However,analysts express concern over the renewed segmentation of the exchange market. Gabriel Caamaño, director of Outlier consultant, argued the “cross restriction” will likely widen the exchange rate gap, creating pressure on local producers. “It is anti-production. The reason is not having bought international reservations when the scheme should be forced,” he said.
Lorenzo Sigaut gravina, director of macroeconomic analysis at Balance, echoed these concerns, noting the timing of the restrictions following the influx of agricultural dollars and US Treasury support. “Brush and hope that the treasure has bought strong: from October the desert,” he concluded, suggesting a potential return to scarcity if the BCRA doesn’t continue to aggressively build reserves.
