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Argentina's Central Bank Secures $1 Billion REPO With Five International Banks at 8.8% for Over Two Years

Jan 3, 2025, 06:19 PM

Argentina's central bank, the Banco Central de la República Argentina (BCRA), has secured a $1 billion repurchase agreement (REPO) with five international banks: Santander, BBVA, JPMorgan, Citi, and ICBC. The agreement, finalized on Friday, involves a term of two years and four months at an annual interest rate of 8.8%. The operation uses BOPREAL Serie 1-D bonds as collateral. Despite receiving offers totaling $2.850 billion, the BCRA opted to take a smaller amount due to the favorable evolution of its international reserves. This move is seen as a tool to enhance the central bank's liquidity in foreign currency at a lower cost than previously available options, aiding in the management of its reserves and supporting the gradual lifting of foreign exchange restrictions.