As a result of the movements in the local money and fixed income markets caused by the expectation of the 10% retirement project of pension funds that is being processed in Congress, the Central Bank (BC) is ready to take possible new measures.
In this regard, the issuing entity announced that it will intensify its monitoring of financial markets in the coming weeks, “with the purpose of adopting, if necessary, the measures that are within its competence to mitigate eventual disruptions that could compromise financial stability.”
For these purposes, he pointed out that they can use instruments that are currently operating, such as the bank bond purchase program, aimed at stabilizing the fixed-income market with an available amount of US $ 4.6 billion “, which can be appropriately adjusted in terms of its volume , duration of the bonds and discount rate “.
Likewise, the Bank, in coordination with financial supervisors, is studying additional measures to deepen the liquidity of the open fixed-income market, in order to mitigate the effects of portfolio changes involving these assets.
This contemplates “the necessary regulatory adjustments for the development of Repos or other agreed operations of cash purchase and simultaneous sale of financial instruments of the same kind, as well as evaluating the performance of this type of operations by the Central Bank itself,” he said. the entity in a statement.
Finally, the BC will keep an eye on the functioning of the money market, and does not rule out expanding the current asset purchase programs to incorporate bank deposit certificates in order to avoid episodes of excessive volatility in the market.
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