The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Argentina: Central bank turns counterparty on debt swaps

The Argentine central bank will shortly start operating as a counterparty in the local swap market traded at the country’s main fixed-income exchange, the Mercado Abierto Electrónico.

Argentina has weak long-term capital markets and the central bank will start intervening in the swap market within the next two months as a way to stimulate greater medium- and long-term commercial lending at fixed rates.

Eventually, it wants to improve the liquidity in maturities of up to five years and a combined sum of up to Ps12 billion ($4 billion).

MAE will trade standardized interest rate contracts, whereby one intervening bank – at first the central bank – will pay on a monthly basis its financial counterparty a fixed interest rate in exchange for a 30-day Badlar, time deposit rate. The difference between the rates is paid or received at each maturity date.

Alberto Saravia, chief executive of Saravia Financial Management, a local fund manager, says: "Swaps are a new instrument at MAE and the active participation of the central bank is necessary for several months until the member banks gradually begin acting on both sides of the marketplace.

"The bulk of commercial bank funding in Argentina is made up of time deposits of up to 180 days, with a very high concentration in 30-day maturities.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree