The central bank should now aim to have $10.3 billion of net reserves by the end of December, as the cumulative target adds to the $2.3 billion of reserves held at the end of 2021. The targeted reserves will also change for each quarter of this year, lowering the bar for the South American economy to pass future IMF reviews. Meeting the reserve targets are crucial for the government of President Alberto Fernandez, in large part to allow future payments as part of the debt deal from the international lender to flow.
The target lowering is heavily front-loaded, with the
end-March target now at $1.9 billion, down from $5.5 billion,
while the target for the second quarter was eased to $6.8
billion from $8.6 billion. For the end-September goal, the
target now is $7.2 billion against the $8.7 billion agreed on
the previous review.
The IMF previously said it approved the lower targets "to
partially accommodate the impact of the severe drought" while
also promoting economic stability and addressing setbacks.
But, weighing on further reserve accumulation, Argentina's
central bank in March sold the largest monthly amount of dollars
since 2019 as it struggles to prop up the peso currency amid
triple-digit inflation.
The Argentine peso is down nearly 16% this year
versus the greenback.
(Reporting by Rodrigo Campos in New York and Jorgelina do
Rosario in London; Additional reporting by Jorge Otaola in
Buenos Aires; Editing by Sarah Morland and Christian
Schmollinger)
