Córdoba breaks the BCRA stocks: it will be able to buy the official dollar / Argentina News

Governor Schiaretti had filed an amparo, which made his rejection of the Central Bank’s measure rarer. What did Justice say?

By iProfessional

06/06/2023 – 5:44 p.m.

At this time, the governor of Córdoba, Juan Schiaretti, is the provincial leader with the greatest impact at the national level. After knowing the possibility that the referent of Cordovan Peronism joins Together for Change -a measure finally rejected-, Justice seems to have given him the right in another key aspect for his management: access to foreign exchange.

The federal judge No. 2 of Córdoba, Alejandro Sánchez Freytes, made room this Tuesday under the protection presented by the provincial president and resolved to authorize Córdoba to access dollars at the official value to pay a debt maturity for US$143 million that expires on Saturdaydespite the “stocks” ordered by the Central Bank for the provinces’ access to currency in the case of 60% of the debt maturities, in the midst of the shortage of reserves.

Justice will allow Córdoba to access dollars to pay debts

“The suspension of the effects of Communication “A” 7782 of the BCRA and its enforcement acts is ordered, therefore the plaintiff must be allowed immediate access to the exchange market to purchase the necessary dollarsonly to cancel the debt maturity of 06.10 of the current year,” said the magistrate.

Schiaretti himself echoed the decision. “The Federal Justice ruled in favor of the Province before the decision of the Central Bank of restrict the sale of dollars to comply with the commitments that we had opportunely assumed”indicated in this regard.

Less than a week ago, the Central Bank had published a resolution announcing that it would limit the release of funds in dollars to the provinces, and that they would have to pay their debts with their own funds. However, Schiaretti was the first to oppose the measure and filed an appeal in court.

Schiaretti was joined by the provinces of Mendoza, Entre Ríos and Neuquén.

To prevent a greater outflow of dollars, the BCRA decided to limit access to foreign currency to the provinces.

Dollar stocks for provinces: Córdoba filed an amparo against the BCRA

The province of Córdoba rejected the resolution of the Central Bank of the Argentine Republic (BCRA) that denies the provinces access to purchase dollars in the Single Exchange Market for the repayment of debts in foreign currency.

“The unexpected measure is discriminatory and anti-federal, attacking the normal development and autonomy of the provinces; even more so, when those commitments assumed in dollars have been authorized to be contracted by the national State itself, generating notable damage to the province of Córdoba,” warned the government of Juan Schiaretti.

For this reason, the Government of Córdoba will present an amparo in the Federal Justice to annul the provision.

The Central Bank seeks to stop granting dollars to the provinces

In a scenario of net reserves that are already negative around US$1.8 billion, the Central Bank (BCRA) further tightened the stocks by limiting access to the official dollar for the payments of debts in that currency of the provinces. And, for analysts, this new restriction may put pressure on parallel dollars.

The measure was approved at the meeting held this Thursday by the board of directors of the monetary entity and provides that the provincial jurisdictions must present a proposal to the BCRA that contemplates a cancellation of up to 40% of the capital maturities and that the rest of the capital obtain new financing, as a minimum, with an average life of two years.

Schiaretti focused on the decision of the Justice on his official Twitter account.