The Argentine Government is about to meet its first goal with the IMF

In January, it committed to accumulating around $6 billion in reserves by the end of March, but the goal could be achieved as early as next week.

The Minister of Economy of Argentina, Luis Caputo, and the President of the Central Bank, Santiago Bausili, are about to fulfill one of the first goals agreed upon with the International Monetary Fund (IMF) in January when the IMF mission visited Buenos Aires. It is estimated that between the remainder of the week and the next one, the accumulated reserves could reach $6 billion. The primary objective was the end of March, but Argentina is ahead of schedule.

Data from the Central Bank shows that since the beginning of President Javier Milei’s current administration, international reserves have increased by $5.492 billion. They started with a gross $21.017 billion on December 11, 2023, and closed at a gross $26.509 billion last Friday, February 9, according to the latest official data.

The first-quarter target is an intermediate step towards closing 2024 with a total of $10 billion, as part of the commitments made with the organization led by Kristalina Georgieva. Achieving the first goal before the deadline will provide greater confidence in Caputo’s adjustment plan.

In the market, it is considered that the objective is “perfectly achievable,” but in reality, what operators are starting to look at now is the unification of the different exchange rates.

It’s important to consider that the limited existing dollars will also have to address other fronts. In February, in addition to the $781 million in interest paid to the IMF, there was another $77 million to international organizations and bilateral loans according to data from the Office of the Congressional Budget.

In 2024, the majority of foreign currency payments correspond to the IMF, totaling $7.463 billion. The last repayment of the standby agreement loan is due in July.

Meanwhile, the financial entity’s objective is to continue buying dollars in the market.