MercoPress. South Atlantic News Agency

Argentina’s central bank extends dollar-buying streak, pushing reserves to a Milei-era high

A notable tailwind has been the mark-to-market boost from gold holdings, as bullion rallied amid global volatility

Argentina’s central bank (BCRA) posted another net purchase in the foreign-exchange market on Thursday, buying US$52 million and logging a 19-session streak of net buying, according to figures reported by local media. Over that run, the bank accumulated US$1.134 billion, while gross reserves rose to US$46.24 billion, the highest level since 2021 and the strongest reading since President Javier Milei took office.

The accumulation comes at the start of what officials describe as “phase 4” of the economic program, built around reserve-building alongside an exchange-rate framework with bands and intervention rules. The BCRA has set a daily cap of 5% of traded volume in the official FX market for its purchases, while also allowing for direct, off-market transactions with counterparties to avoid disrupting market functioning.

A notable tailwind has been the mark-to-market boost from gold holdings, as bullion rallied amid global volatility. Gold hit new all-time highs above US$4,700 an ounce in January, lifting the valuation of reserve assets for holders worldwide.

Beyond valuation effects, analysts point to stronger dollar supply from agro-export settlements and corporate external funding, alongside softer demand for hard currency. In comments carried by Infobae, Adcap’s research head Federico Filippini said recent sessions showed slower FX buying “as liquidity increased significantly,” linking the shift to unsterilized purchases and warning that Treasury–central bank coordination becomes more important when liquidity rises quickly.

Looking ahead, Reuters reported that under the updated monetary framework, the BCRA aims to buy up to US$10 billion in 2026, with total reserve accumulation potentially reaching US$17 billion depending on balance-of-payments flows—an effort Reuters said aligns with IMF calls to rebuild reserve buffers as Argentina seeks a more durable return to capital markets.

Markets have also tracked the drop in country risk, which Milei highlighted this week after the benchmark slipped below 500 points. But El País (Argentina) noted that the headline record refers to gross reserves, while net reserves—the portion effectively available to the central bank—remain a key watchpoint for investors.

Argentina repaid funds drawn from a U.S. credit line, a step framed by Washington as supportive of confidence-building. The same report cautioned that upcoming IMF repayments and other debt obligations will continue to test Argentina’s external liquidity position.