The Argentine government is employing various mechanisms to meet President Javier Milei's request that the influx of dollars not be channeled into inflation. In this week's tender, the Treasury decided on a rollover exceeding 100%, meaning it took in more pesos than needed to cover the maturity. This way, it removed liquidity from the market, compensating for the central bank's issuance used for its daily dollar purchases. In yesterday's tender, the Treasury needed 9.6 trillion pesos and took in 10.4 trillion pesos with a rollover of 108%. «This result reaffirms the trend observed throughout the year, where the Treasury acts as a mechanism to absorb the liquidity injected by the Central Bank through the purchase of reserves,» Puente Bursátil clarified. In a report seen by the Argentine News Agency, it stated: «In this way, the record of the previous tender —where rollover was exceptionally below 100%— should, for now, be read as a one-off event that does not signal a change in the underlying contracting strategy, with a rollover so far this year that also stands at a cumulative 108%». In this manner, the economic team prevents an excess of pesos from remaining in circulation that could pressure prices and the dollar's exchange rate.
