Government Breathes Sigh of Relief as BCRA Rolls Over All Expiring Lebacs, Exchange Rate Drops

The Macri administration won a key battle in the economic landscape yesterday: it managed to auction all the treasury notes known as Lebacs that were set to expire today – which overall amounted to US $30 billion – and, at the same time, appreciate the peso against the dollar by 3.7 percent, on a day in which most similar currencies lost ground as a result of the US Fed’s decision to increase the interest rates of its 10-year bonds to 3.9 percent, its highest level in seven years.

A coordinated move from the Central Bank (BCRA) and the Ministry of Finance led by Luis Caputo was key at the time of reaching this goal: the BCRA repeated the strategy it had implemented on the previous day, of bidding US $5 billion – almost 10 percent of its…

Original published: 2018-05-16 13:01:14 Read the full Buenos Aires News here

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