Thursday, December 5, 2019
Perfil

ECONOMY | 16-05-2018 09:26

Relief: Central Bank refinances expiring Lebacs, dollar drops below 25 pesos

The bank’s strategy has calmed nerves about Argentina's short-term economic scenario after weeks of market volatility.

Argentina’s Central Bank refinanced US$26.84 billion worth of short-term Lebac notes on Tuesday and auctioned new debt to the tune of US$200 million.

The bank’s strategy has calmed nerves about Argentina's short-term economic scenario after weeks of market volatility.

The peso suffered a 7.5-percent single-day plummet on Tuesday but rebounded to end the day at 24.67 against the dollar, as the Bank sold an additional US$ 791 million in reserves. It was the first time in 16 days that the peso has strengthened against the greenback.

The entity led by Federico Sturzenegger confirmed in a statement that it had refinanced all expiring peso-denominated securities with interest rates ranging from 40 percent for the 36-day Lebac to 38 percent for the 154-day note.

The government is currently negotiating a line of financing with the International Monetary Fund (IMF). Informal talks begin on Friday in Washington.

Observers believe Argentina will seek around US$30 billion. However, with its status as an emerging market in doubt, the country might expect much less and strict austerity conditions.

-TIMES

In this news

More in (in spanish)

Comments

Todo lo que hay que saber

La información más importante de este martes en un breve video

Ads Space

Ads Space