The Central Bank of Argentina’s Balance sheet as of May 31 shows total international reserves of ARS 744,855 M, which represent USD 46,146 M when converted at the official exchange rate of ARS 16.1420 per USD. Measured in USD, foreign reserves fell 4.3% throughout the month of May, but still show a 53% year-over-year growth rate. However, a stronger USD has meant that international reserves have remained stable when measured in pesos.
If we deduce checking accounts in other currencies (ARS 249,181 M) and other liabilities (ARS 192,805 M), we arrive to net international reserves of ARS 302,899 M, or USD 18,765 M. Net international reserves grew 9.15% throughout May, mainly due to a steep decline in checking accounts in other currencies.
As of May 31, the monetary base was a total ARS 757,086 M, dropping 4.9% in May, resulting in a significant deceleration in its year-over-year growth rate, which fell almost 8 percentage points to 32%.
This fall in M0 has resulted from a significant rise in the stock of securities issued by the Central Bank, which increased about 8% over May, reaching a total volume of ARS 999,144 M. Taken together, total monetary liabilities (M0 + Central Bank Bills) have grown 2% over May.
As of May 31, the ratio between international reserves to monetary liabilities sits at 42.4%, falling 0.8 percentage points over the last month. Net international reserves, on the other hand, represent 17.25% of monetary liabilities, 1.8 percentage points more than they did by the end of April.
Federal government debt issuances held by the Central Bank total ARS 1,123,394 M, with a 4.5% month-over-month growth. To calculate total obligations from the Argentine government to the Central Bank, we must: add temporary loans by the federal government (ARS 434,430 M), contra account of the use of the reserve portion (ARS -11,827 M), contra account of special drawing rights (ARS -38,025 M) and deduce deposits from the argentine government and others (ARS 18,226) as well as contra account of Argentine government’s contribution to international organizations (ARS 47,056). As a result, we estimate total obligations from the Argentine government to the Central Bank equal to about ARS 1,445 billions or USD 89,499 millions.
The following chart shows the evolution of the ratio between foreign reserves and monetary liabilities, as well as total obligations from the Argentine Government to the Central Bank of Argentina.