Once certified, the gold could eventually be used as collateral to obtain financing, according to one of the people, who asked not to be identified discussing private information. Before the move, about half of Argentina’s gold was in domestic vaults with the other half in London, another person said.
Officials from the central bank, known by its Spanish acronym BCRA, declined to comment on the matter.
The monetary authority separately confirmed Monday it had sent gold between its accounts, mentioning both ones in the country and others abroad. However, the bank didn’t say how much of its nearly $5 billion in gold was shipped, for what reason or to where.
Bank officials also criticized what they called “irresponsible” reports about the gold going abroad, emphasizing that management of reserves has always been kept confidential.
Newspaper Pagina 12 published a video Aug. 19 of a truck emblazoned with the BCRA logo driving on the highway, reporting that it was en route to the main international airport in Buenos Aires with $250 million of gold bars.
It’s not clear how Caputo and Central Bank Governor Santiago Bausili will use the gold that’s been transferred abroad to be certified. But the economy minister has already said the government is negotiating a special purchase vehicle, or repo agreement, with commercial banks.
As usual, the fiscally responsible argentinean right is going out of its way to get loans in dollars so the following governments have to pay them.
what are they even buying with them, its not like argentine is on some infrastructure spree (aside from loan money to pay previous loans and get a job at the imf for your nephew, of course)
It’s to get loans they know they can’t pay, so the government is “forced” to sell their natural resources for cheap to their friends. Lithium and gas, comes to mind, but argentineans are also greatly educated and their talent can be bought for cents (an argentinean friend is a Ruby developer with more that 10 years of experience, he works for an American firm at 60k a year, someone’s like him in the US makes at least 150k).
Like mining companies (canadian, but maybe usian) roll up, build stuff, poison rivers etc, but they loan for capex on foreign (for argies) markets in dollars already, they extract rent/profit from mines to pay those loans and grift for shareholders in ontario teachers union or whatever.
But at what point state foreign currency reserves enter this shit? If you privatized everything, state expenditures are not, presumably, foreign currency denominated. And argentine is one of the largest imf debtor, and have not built shit to show for it.
Rich people buying foreign goods, converting their constantly depreciating pesos to dollars.
but how is it a state problem? rich people can go and get loans if they so desire.
I understand like of oil prices spiked and you live in no-oil zone (a la sri lanka) or you do industrialization and need to get them machines. But the fuck argentine is doing
It’s not, but gotta keep
happy.
there are better uses of foreign currencies, but free trade/capital means this.