Argentina's Central Bank Secures $1 Billion REPO from Five International Banks at 8.8% for Two Years and Four Months

Jan 3, 2025, 06:48 PM

The Central Bank of Argentina (BCRA) has secured a $1 billion repurchase agreement (REPO) with five international banks to bolster its foreign reserves. The operation, announced on Friday, involves a fixed annual interest rate of 8.8% over a term of two years and four months and uses BOPREAL Serie 1-D titles as collateral. The participating banks include BBVA, Santander, J.P. Morgan, ICBC, and Citi. The BCRA received offers totaling $2.850 billion during the initial auction on December 27, but chose to limit the loan to $1 billion due to favorable reserve developments and excess demand. This move is part of the BCRA's strategy to enhance its liquidity in foreign currency at a lower cost than previously available options, and it aims to facilitate the gradual lifting of currency restrictions.