Argentina's Central Bank auctions bills for 2.882 bln USD

Source: Xinhua | 2018-10-04

The Central Bank of Argentina (BCRA) on Wednesday allocated 109.520 billion Argentine pesos (2.882 billion U.S. dollars) with a rate higher than 70 percent in its third auction of seven-day liquidity bills (Leliq).

The auction is part of a new monetary blueprint to relax the exchange rate and contain inflation, the BCRA said.

The monetary authority said that in the seven-day bidding process it was agreed that the average yield would be 71.26 percent, while for other allocations the rate would be as much as 74 percent.

Interest rates for the Leliq, which are the highest in the world, rose at least 7 percentage point as of last Friday when they closed at 65 percent.

The absorption of the peso through the sale of bills resulted in the exchange rate of U.S. dollars closing 40 cents lower on Wednesday in the wholesale and retail markets.

Since Monday when the daily Leliq offering with higher rates began, the U.S. dollar has declined 9 percent.