In a strategic move, the Banco Central (BCRA) has managed to acquire close to US$ 7,000 million in the last two months, consolidating a record of growth in gross reserves. This increase translates into a total of US$26,509 million at the end of the day, according to preliminary data and excites the Government of Javier Miley in the move towards dollarization.
According to agency data THATthe latest acquisition of the entity led by Santiago Bausili, made on Friday and amounting to US$ 167 million, contributed significantly to this increase, placing the total purchases for the week at US$ 607 million and bringing the total purchased in February to US$ 770 million. Since the change of Government, the BCRA has accumulated a total of US$6,939 million.
The uncertainty in the market focuses on the impact that enabling more import demand will have on the purchasing capacity demonstrated so far by the BCRA. However, the influx of dollars from an exceptionally positive agricultural harvest is expected to provide a significant boost in March-April.
The agroindustrial sector projects the second best harvest in Argentine history, estimating a production of around 137 million tons due to favorable weather conditions. This boom in production would generate sales abroad for approximately US$35.8 billion, contributing an additional US$10 billion to the BCRA’s reserves..
The president of Argentina, Javier Milei, known for his stance in favor of economic dollarization, has expressed his enthusiasm for this achievement. Milei highlighted that the country is “nothing away” from being able to implement dollarization, emphasizing the accumulation of reserves that support the monetary base. However, he acknowledged that the completion of this measure will require more time and the implementation of reforms in the financial system.
Milei stressed that, although the monetary base in pesos remains constant, the amount of dollars that support it is experiencing constant growth, bringing the country closer to the possibility of dollarization “We are very close, but it takes a little more time,” stated the libertarian economist with complete confidence.
