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Montevideo, August 17th 2022 - 22:59 UTC



Argentine central bank admits 'serious loss of reserves', which stand at 30bn

Wednesday, December 4th 2013 - 02:50 UTC
Full article 8 comments
The newly appointed president Fábrega is confident the situation can be reversed The newly appointed president Fábrega is confident the situation can be reversed

The newly appointed head of Argentina's Central bank Juan Carlos Fábrega admitted that in the last few months “loss of international reserves” has been serious, but “we are working to correct the situation”.

 Fábrega made the revelation before the Senate committee that discussed and approved his nomination.

“Clearly we are coming out of months of great losses of reserves, serious losses but we are working to correct the situation”, said Fabrega.

“However even when we are determined to work to stop the drain of reserves, and analyze the causes, today I can say we have 30 billion dollars in reserves”, underlined Fábrega.

The new chairman also pointed out that central bank reserves have been used “to face payments” of sovereign debt to the tune of over 42 billion dollars, which started with the cancellation of all commitments with the IMF, 10 billion dollars.

Nevertheless he added that “the overall sovereign debt in foreign currency has diminished considerably as a percentage of GDP” and only represents 25.8%, which he described as “a good piece of news from the point of view of our payments schedule”.

Although Fábrega did not reveal many details of government policy, on Tuesday, AFIP tax bureau increased the 20% high premium Argentineans were forced to pay when travelling abroad to 35%, which in real terms imposes a serious monetary limit to travelers overseas since the price of the US dollar climbed from 6.19 to 8.35 Pesos.

Likewise cabinet chief Jorge Capitanich announced Planning Minister Julio De Vido will be going on a mission to Russia, China and Brazil to analyze 15 infrastructure projects that will account for 20 billion dollars in foreign investment.

And on Monday Capitanich called on farmers “not to speculate” by holding on to soybeans since the international price is falling. “We believe there are anywhere between 6.5 and 10 billion dollars of soybeans still to be traded”.

Categories: Economy, Politics, Argentina.

Top Comments

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  • Anglotino

    Actions speak louder than words.

    It doesn't matter what they say, the simple fact is that reserves keep dropping.

    Dec 04th, 2013 - 03:22 am 0
  • Optimus_Princeps

    The conversation at the 'dinner table' is that we would be a rich country, if the K's would stop stealing for a year. There should be an article verifying this or at least drawing up estimates.

    They are accelerating the destruction of this country by increasing the kickbacks they receive from charging an extra 35% for credit card purchases abroad, the 50% luxury tax, etc. They would let Argentina burn if it means them becoming wealthy, and escaping with the loot.

    Dec 04th, 2013 - 11:47 am 0
  • Viscount Falkland

    “To those who are now promising to fix all your problems, I say, ‘Go and fix yourself.’ . . . Have a change of heart. Get to confession, before you need it even more! The current crisis will not be improved by magicians from outside the country and nor will [improvement] come from the golden mouth of our politicians, so accustomed to making incredible promises.”
    Jorge Mario Bergoglio....AKA Pope

    Dec 04th, 2013 - 12:04 pm 0
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