January 10, 2019 / 4:03 PM / 7 days ago

Argentine Treasury will sell up to $11 bln from April - media

BUENOS AIRES, Jan 10 (Reuters) - Argentina’s Treasury will start selling up to $11 billion from April to help alleviate a peso cash gap, Finance Secretary Santiago Bausili said in an interview with a local news site published on Thursday.

The Treasury will have a surplus of around $10 billion, Bausili said in the interview with Infobae, adding that the government wants to avoid shocks to the exchange rate of Argentina’s peso currency, which was battered in 2018.

“Sales will be from April, which is when we begin to have a cash gap, and it remains to be seen how it will move forward,” Bausili said, adding that dollars could be sold to the central bank or through auctions.

“We want to influence the exchange market as little as possible,” he said.

Argentina has endured financial turbulence that began in April last year, including a 50.53 percent drop in the peso’s value which prompted the central bank to raise the interest rate to more than 70 percent.

The government has a surplus of dollars through its line of credit agreed with the International Monetary Fund (IMF) last year for $56.3 billion dollars. In 2018, the IMF dispersed some $20.21 billion to the country.

Bausili dismissed rumors of a potential default in Argentina in 2020. (Reporting by Eliana Raszewski; writing by Cassandra Garrison Editing by Susan Thomas)

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