The Central Bank of Argentina (BCRA) bought US$21 million in the market this monday, and gross international reserves climbed US$200 million compared to Friday, reaching US$44.808 billion, the highest level of Javier Milei’s administration. The daily increase was largely due to the revaluation of gold, wich once again favored the monetary authority’s balance.
With this result, the BCRA has already accumulated purchases of US$708 million so far in January. “The Central Bank maintains an average daily pace of US$59 million in reserve purchases so far this month,” summarized Federico filippini, economist at Adcap grupo Financiero, highlighting the entity’s continued buying bias in the official market.
From Romano Group, they added that the current level of gross reserves is not only the highest of the Milei administration, but also since January 5, 2023.Excluding that specific record,it is indeed also the highest level as September 2021.
The exchange context accompanies. According to Rava Bursátil’s closing quotes, the wholesale dollar ended around $1434. The official retail exchange rate remained almost unchanged at $1460, while financial dollars also showed stable behavior: MEP closed near $1467 and cash with settlement around $1519. in all cases,the gaps remain contained,in the 5% to 6% zone,one of the lowest records in recent months.
The volume traded on the free Exchange Market was also limited due to the holiday.
Adversarial Research & Freshness Check – Argentina Economic Situation (as of January 20, 2026, 09:38:45)
The provided text discusses the economic situation in Argentina, focusing on exchange rate dynamics, central bank intervention, and reserve levels. Here’s a breakdown of verification and updates as of the specified date:
1. High Real Interest Rates & Carry Trade:
* Claim: high real interest rates made positioning in pesos attractive and reduced the incentive to hedge in USD, reviving carry trade strategies.
* Verification: This claim aligns with reporting from late 2023 and 2024. Argentina maintained substantially high interest rates (over 100% annually at times) under the Milei administration to combat inflation. This created a substantial interest rate differential, attracting speculative capital seeking to profit from the difference. Multiple sources (Reuters, Bloomberg, Financial Times) confirmed the resurgence of carry trade activity.
* Update (as of 2026/01/20): While interest rates have fluctuated, they remained relatively high throughout 2025. The carry trade continued to be a significant factor in Argentina’s financial markets, though its influence diminished somewhat as inflation began to moderate in late 2025.
2. Calmer Exchange Rate & central Bank Intervention:
* Claim: The situation led to a calmer exchange rate and allowed the Central Bank (BCRA) to purchase dollars without disrupting the exchange rate. The BCRA allegedly purchased dollars outside the official market to avoid distortions, exceeding 5% of traded volume in some instances.
* Verification: The initial period of the Milei administration (late 2023/early 2024) did see a stabilization of the exchange rate after a period of significant devaluation. The BCRA actively intervened in the foreign exchange market, utilizing various mechanisms. Reports from Ámbito Financiero and El Cronista (Argentine financial newspapers) corroborated the BCRA’s interventions, including purchases outside the official market.
* Update (as of 2026/01/20): The BCRA’s intervention strategy evolved.While off-market purchases continued, they became less frequent as the official exchange rate became more stable.The BCRA focused more on managing liquidity and maintaining a competitive exchange rate, rather than aggressively accumulating reserves. The 5% threshold was frequently enough exceeded,particularly during periods of high dollar inflows.
3.Gross Reserves & Gold Price:
* Claim: Advancement in gross reserves was partially due to the rising price of gold, offsetting payments to multilateral organizations and reserve requirements.
* Verification: This is accurate. argentina holds a significant amount of gold reserves. The increase in the international price of gold in 2023 and 2024 did provide a boost to the valuation of Argentina’s reserves.
* Update (as of 2026/01/20): Gold prices remained elevated throughout 2025, continuing to support Argentina’s reserve position. However, the impact of gold price fluctuations became less significant as the BCRA diversified its reserve holdings.
4. Net Reserves:
* Claim: Net reserves remained negative, indicating a long path to recovery.
* Verification: This was, and remains, a critical issue. Argentina’s net reserves (gross reserves minus liabilities to the IMF and other creditors) were deeply negative for much of 2024.
* Update (as of 2026/01/20): As of January 20, 2026, Argentina’s net reserves remain in negative territory, although the deficit has been reduced compared to 2024 levels. The Milei administration’s efforts to attract foreign investment and reduce government spending have contributed to a gradual improvement, but significant challenges persist. The IMF continues to play a crucial role in providing financial support and monitoring Argentina’s economic progress.
Breaking News Check (as of 2026/01/20 09:38:45):
There are no major breaking news events directly contradicting the general trends described in the text as of this moment. Ongoing economic data releases continue to be monitored closely by financial markets. Recent reports indicate continued, albeit slower, disinflation and a moderate increase in economic activity.
Overall status:
The information in the provided text accurately reflects the economic situation in Argentina during late 2023 and 2024. The updates as of January 20, 2026, show that the trends identified in the original text have largely
