The Government of Javier Milei in Argentinabegins this Monday a new stage of its economic stabilization plan. In this phase, operations with passive repos, which are instruments issued by the Central Bank (BCRA) to absorb excessive liquidity, will be replaced by Fiscal Liquidity Letters (LeFi). The latter are issued by the Treasury and their yield is linked to the monetary policy rate.
The BCRA will begin on Monday to dismantle what remains of its stock of remunerated liabilities. As of last Thursday, the passive transfers amounted to approximately 11.3 million pesos (equivalent to about 11.3 million dollars at the current official exchange rate), according to Facimex. In addition, it will sell the new Fiscal Liquidity Letters (Lefi) to the banks, putting an end to the so-called quasi-fiscal deficit.
Debt has been transferred to the Central Bank to the Treasury for stabilization
On June 28, the Minister of Economy, Luis Caputo, and the president of the BCRA, Santiago Bausili, announced this “second stage” of their stabilization plan
(With information from EFE)
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2024-07-26 06:41:16
