Argentina’s international reserves once again exceeded the 50 billion US dollars mark, boosted by an intervention to the Central Bank by the market in a record purchase of 262 million USD.
The monetary entity detailed that the reserves closed at 50.162 billion, which is 286 million USD more than Wednesday's closing, according to Economy Ministry sources.
The Central Bank's intervention was what made the difference, due to the strong foreign exchange settlement on behalf of the agro export sector, since the variation of the Argentine currency before the US currency, along with the external bonds that make up the reserves, drew a negative balance.
Although the reserves exceeded 50 billion, the record continues being 50.517 billion USD, registered on March 27, 2008.
The current level of reserves was already reached on March 12, 2008, only 24 hours after the Argentine government announced the approval of resolution 125 concerning farmers' export duties, which gave way to a harsh conflict between the State and field employers.
In this way, after the maximum historic level of 50.517 billion, an important decrease began, which was aggravated by the international crisis led by Wall Street due to low-quality mortgages. The decline deepened in the following months until it reached a floor of 44.973 billion on November 3, 2008.
The data from 2009 shows a certain zigzag, attributed to the pre and post electoral expectations, to the economic progress, and to the new political scene.
In 2010, a regression was registered between February and April, linked to the situation generated by the changes in the Central Bank's governance and the national government's decision to pay debt maturities with available reserves.
The increase in reserves, economists agree, allows the reduction of levels of vulnerability in the Argentine economy and possesses anti-cyclic characteristics, as shown during the latest global crisis.
Furthermore, as opposed to other opportunities, the accumulation of reserves was not the consequence of greater indebtedness but rather because of the strong trade surpluses and a current account surplus, as pointed out by Argentina’s Central Bank and Economy ministry.