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Argentine Central bank losing reserves at a rate of 47.5 million dollars per day

Monday, October 21st 2013 - 21:30 UTC
Full article 24 comments

Argentina's central bank is currently losing international reserves at an average of 47,5 million dollars per day or 8 million per hour, according to the latest figures on the bank's accounts which is increasingly used by the government of President Cristina Fernandez to honor foreign debt and finance the budget. Read full article

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  • CabezaDura

    Its sounds they will be nothing left within two years. It fairly round for her, lucky whitch. That is if the reserves are they say they are. The actual liquid reserves of the BCRA where US$ 33 billion back in May...

    http://www.ieco.clarin.com/economia/dolares-realmente-reservas_0_917908529.html

    Oct 21st, 2013 - 09:57 pm - Link - Report abuse 0
  • yankeeboy

    BCRA doesn't have U$ 33B liquid. They might and I mean might have U$4B and that's with float.
    There's not enough money to pay for the LNG they have contracted, they have cargo ships waiting for payment in Uruguay and I heard a couple left without getting paid!

    They're in dire straits
    and it makes me happy that all of my predictions are coming to fruition.

    Oct 21st, 2013 - 10:14 pm - Link - Report abuse 0
  • Klingon

    47,5 million dollars per day or 8 million per hour ???

    Someone needs to invest in a calculator.
    Watch the rats scatter the week after the election

    Oct 21st, 2013 - 10:32 pm - Link - Report abuse 0
  • yankeeboy

    3. It must be based on the grueling 6 hours a day that BCRA is open.

    Oct 21st, 2013 - 11:06 pm - Link - Report abuse 0
  • redp0ll

    The price of milling bread wheat reached U$D756 per ton in Argentina today as opposed to around $350 traded on the Chicago Exchange
    Argentina once one of the great granaries of the world has now run out of wheat.
    The government knew this would happen some months ago, but distrusted thier own figures and sent thier bloodhounds to sniff out the farmers who were “hoarding” the grain and could find very little evidence of that.
    Yet another result of the disastrous farm policies adopted by the K government.
    They have pretty well killed off the beef industry also
    At those prices the price of bread is going to rise with inevitable consequences
    Uruguay has a surplus of wheat which it is at present exporting to Paraguay and Brazil but cant export to Argentina as they have forbidden wheat imports
    The harvest starts in about a fortnight in the northern provinces which may provide a pallitive to the crisis, but these areas only represent 9% of the national wheat harvest

    Oct 22nd, 2013 - 12:00 am - Link - Report abuse 0
  • CabezaDura

    I thought about that too, but the fact that they haven’t paid the ships doesn’t necessarily mean the money is not physically in the BCRA, It might well be they have other priorities. However they are living by the day for the most part, there is no question about that...Clarin estimates 33 billion back in May, so the reserves should be 5.7 billion less if we consider from June onwards less current October at the rate MercoPress says the BCRA losses.

    Oct 22nd, 2013 - 01:09 am - Link - Report abuse 0
  • redp0ll

    @6 Cabeza Looking fromthe outside your present govt seems to live by some sort of ad hocery hand to mouth.Perhaps now the weather is warming up they feel less needfor LNG and wont pay for the gas consignments as they feel they can kick the can down the track and get away with it temporarly.
    As I mentioned in my previous post, people, even the KKKs supporters cannot live without bread.
    Romour has it that two ships of Canadian grain bound for Brazil have been diverted to Argentina but no doubt they will DEMAND (favourite Argentine word) cash on the barrelhead before unloading
    Its really sad to see what could be a great nation brought into destitution by the crazy policies of your government

    Oct 22nd, 2013 - 01:51 am - Link - Report abuse 0
  • CabezaDura

    7) Hopefully we will remember these as those crazy days that absolutely anything could happen …. “The day that breadless Argentina had to import wheat from Canada”.
    And when you believed that you actually have heard it all…And don’t forget “De lo que no nos enteramos todavía.”

    Oct 22nd, 2013 - 04:17 am - Link - Report abuse 0
  • Mr Ed

    30 years after a Royal Navy taskforce provided the impetus for the restoratioon of democracy, look at the place. At least people are only getting systematically killed by trains, not by a Junta or Montoneros, and on a smaller scale.

    When will people learn from mistakes, like voting in the showers of the past 3 decades?

    Oct 22nd, 2013 - 06:12 am - Link - Report abuse 0
  • LEPRecon

    @9 Mr Ed

    Argentina won't change until the attitude of the people of Argentina changes.

    Face it, too many people in Argentina want something for nothing, and dodge paying taxes, and skim or steal whatever they can get away with. It is considered the norm, and while it is, Argentina will never achieve any success.

    With their access to natural resources they should be one of the richest countries on Earth, with one of the best economies. But they allow criminals, con artists and buffoons into government, who steal, cheat and mismanage these resources into nothing.

    They don't invest in the future of Argentina, they are not patient and want everything today, not realising or caring, that improvement takes time and effort.

    Argentina will be bankrupt soon enough at this rate, no wonder Timidman is desperately trying to divert attention away with this silly Chagos Islander thing.

    Oct 22nd, 2013 - 09:56 am - Link - Report abuse 0
  • Britworker

    It is hard to separate the plight of of the people from their disgusting leadership, when they vote them in time and time again. I hear they are grooming the next Kirchner for power, you would think they had had enough.

    I don't think that Argentina is a viable entity, it was cobbled together with Spanish/Italian/German fascists, they just don't seem to have any core values or identity that hold everything together, other than covet and greed.

    If they were sensible they would allow their Welsh population to have a go at running things. The odd sheep might get shagged, but its a small price to pay.

    Oct 22nd, 2013 - 09:57 am - Link - Report abuse 0
  • yankeeboy

    6. I think a very very bad sign is that BCRA's last balance sheet online is from July.
    The piggy bank is empty, that is why they are coercing various industries into buying U$ bonds by quota, O/G U$500M, Banks U$200MM etc.
    This is a sign of desperation.
    My guess is they'll devalue then force conversion of all U$ into Pesos at the new rate sometime very very soon.

    Oct 22nd, 2013 - 11:17 am - Link - Report abuse 0
  • redp0ll

    @11 Brit.Good idea your last sentence.Trouble is that Argentina has already welshed on its debts. No discourtesy intended to the Welsh themselves.

    Oct 22nd, 2013 - 12:06 pm - Link - Report abuse 0
  • Welsh Wizard

    @11 & 13 Not even our unique brand of wizardry could save them

    Oct 22nd, 2013 - 01:41 pm - Link - Report abuse 0
  • redp0ll

    @14 Lol, o Wizard
    Na angen at anfon brudiwr fel 'r bara darfuwyd a ddewines ydy awron i mewn chyhudda
    = No need to send a wizard, the last one died and a witch is now in charge
    ( My Welsh is a bit rusty)

    Oct 22nd, 2013 - 02:03 pm - Link - Report abuse 0
  • Biguggy

    Peso to dollar now at 10.00. How low will it go.
    http://www.preciodolarblue.com.ar/

    Oct 22nd, 2013 - 04:35 pm - Link - Report abuse 0
  • pgerman

    I regularly check the official data of the BCRA and the official weekly reports and it's quite evident that the situation is really very bad.

    The “official” reserves are U$D 35.000 million but this figure includes useless assets such as bonds, LEBAC, NOBAC, etc and private money in U$D of argentine people in local accounts.

    These useless assets cannot be used to import energy or pay debts. The actual reserves in money are not more than U$D 5.000 millions. So they will have to do something pretty soon...I don't know what they can do to revert this situation.

    Most provably they will be forced to take the U$D 8.000 million that are private savings and change them for mandatory bonds. Stealing this additional money will give them some air

    @Mr Ed...“30 years after a Royal Navy taskforce provided the impetus for the restoratioon of democracy”,...quite cinic from you to write this.

    I have always thought that the UK or the US have never accepted the responsibility of having supported the Junta or Pinochet during plenty of years. Quite sad, we all must learn from our mistakes.

    Oct 22nd, 2013 - 04:51 pm - Link - Report abuse 0
  • Mr Ed

    @17 By US support I take it you mean Carter's arms embargo, Weinberger's massive aid to the Task Force, and do you dispute that the Galtieri junta fell after its aggression was defeated by the Task Force.

    Defeat saved Argentina from itself, and a further war with Chile. They should have elected Mrs Thatcher as President for Life and National Hero in Argentina, but that would have required widespread humility and gratitude, which seems to be scarcer in Argentina than toilet paper in Venezuela.

    Oct 22nd, 2013 - 06:46 pm - Link - Report abuse 0
  • MagnusMaster

    @18 “Defeat saved Argentina from itself”

    What do you mean by that?

    Oct 22nd, 2013 - 06:59 pm - Link - Report abuse 0
  • pgerman

    @18..no Sir, I'm refering to the credits awarded by the UK, loans, training courses in the US and the UK, the cooperation between the US and Argentina in Central America fighting against “comunism”, the large amount of weapons sold by the UK to Argentina and Chile.

    Do I have to remember you that S-A missiles used during the FI War were provided by the UK?
    Do I have to remember you that warships were provided by the UK?
    Do I have to remember you that helicopters used by the Argentine Navy were also provided by the UK?

    How sad, those who don't remember their mistakes are condemned to repete them....

    Oct 22nd, 2013 - 07:25 pm - Link - Report abuse 0
  • GeoffWard2

    There might be very little wheat available for Argentina now the EU have a trading bloc deal with Canada in place.

    Still, the USA can send food aid to Argentina to avoid starvations ... as long as there are no more-deserving countries needing food aid in the rest of the under-developed world.

    Oct 22nd, 2013 - 07:47 pm - Link - Report abuse 0
  • Ayayay

    @11 Britworker hahahahaha

    Oct 23rd, 2013 - 08:34 pm - Link - Report abuse 0
  • Mr Ed

    @ 19 what do you think? What if the Junta had prevailed in 1982 and gone on with its murderous plans? 30,000 casualties in war with Chile, then a pop at Uruguay or Paraguay? When dictators find war useful, they tend not to stop.

    Put safely in a box by the Royal Navy, the Argentine Armed Forces have had to behave.

    Oct 23rd, 2013 - 09:06 pm - Link - Report abuse 0
  • St.John

    Yesterday, in Mendoza, pan francés cost pesos 18.75 per kg

    @ 1 CabezaDura

    I have a strong suspicion that those US$ 33 billion back in May included what was hidden in private safes, in bank vaults and stuffed matresses.

    It is, however, not a problem to buy dollars at below the official rate, only 4.53 pesos por dólar.

    Just enter the amount you want and hit the 'Continuar' button http://compratedolares.com.ar/

    Oct 24th, 2013 - 01:18 pm - Link - Report abuse 0

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