2 Jul 2013
Flash: Argentina - Reserves to drop almost US$10bn in 2013 –BofA Merrill Lynch
FXstreet.com (London) - Tomas Rhys Edwards at Bof A Merrill Lynch said that international reserves dropped US$6.1bn in 1H.
BofA Merrill Lynch estimate that net international reserves are close to US$29bn. They expect the drain in reserves to slow down in 2H, but there are downside risks, mainly stemming from more than US$4bn in foreign currency government debt payments. Low reserves were, and still are, the main driver of our call of no Warrant payment next year, although we acknowledge risks for its payment have increased.
BofA Merrill Lynch estimate that net international reserves are close to US$29bn. They expect the drain in reserves to slow down in 2H, but there are downside risks, mainly stemming from more than US$4bn in foreign currency government debt payments. Low reserves were, and still are, the main driver of our call of no Warrant payment next year, although we acknowledge risks for its payment have increased.