Argentine central bank international reserves stand at US$ 46.885 million following on Monday's rescue of different maturing bonds and support in the local market to help stabilize the price of the US dollar. This demanded some US$ 600 million.
This means that the Central Bank assets have eroded some US$ 19,423 million (30%) since the August PASO primary in which business friendly president Mauricio Macri lost to opposition leader Alberto Fernandez and his running companion, ex populist president Cristina Fernandez de Kirchner.
Besides rescuing US$ 500 million in bonds, the central bank also intervened in the local market with some US$ 160 million to help the greenback remain at an exchange rate of 59/61 Pesos. Another factor in the drain have been bank clients who are withdrawing their deposits in dollars. The Macri administration has allowed a onetime draw of a maximum of US$ 10.000 per depositor.
With Monday's erosion the Argentine central bank has lost some US$ 1.187 million in reserves so far this month.
Meanwhile the Buenos Aires stock exchange index, Merval on Monday following on Sunday's presidential debate after a slow declining start ended trading 1.8% up at 32.550 points, which adds to the 0.54% increase of last week's operations.
Energy, financial and telecom shares, among which YPF, Pampa Energia and Telecom Argentina helped lift the index. Turnover was 1.300 million Pesos with 75 shares up and 47 down or unchanged.
The JP Morgan country risk rate climbed 3.6% and reached 2.100 points on Monday, given the coming presidential election next Sunday and the fact that opposition leader Alberto Fernandez is expected to win by a large margin. The index increased 74 points and ended at 2.122, returning to levels of two weeks ago.