*Argentina’s central bank (BCRA) has announced a slew of new measures aimed at boosting its international reserves. The BCRA stated that the finance secretariat had announced that local currency bonds can now be purchased in US dollars, with a monthly limit of US$1bn, while the minimum time requirements for foreign investors to have remained in Argentina before buying Argentine bonds will be eliminated. The BCRA also announced that it will hold a dollar repurchase (repo) auction with international banks tomorrow (11 June) of up to US$2bn. This follows a US$1bn operation in December. Additional measures include an offering of Bopreal Series 4 bonds to companies with external obligations related to debts or dividends prior to 2025, and commercial debts dated prior to 12 December 2023; the phasing out of LeFi bonds, which were introduced last year to replace the short-term liquidity notes known as Leliqs, once they mature in July; and adjustments to reserve requirements policy to reduce distortions and strengthen monetary control. The announcements form part of a broader strategy by President Javier Milei to boost Argentina’s foreign currency reserves following an agreement reached between his government and the International Monetary Fund (IMF) in April.
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