Origin and fall of Lebac, mail to the Central Bank which became a snowball



Letter to the Central Bank (Lebac) Mail has been completed. The BCRA settled the $ 68,618 million stock of these instruments, which came to exceed the trillion pesos in August last year and created paying interest for the same $ s21,000 million between 2016 and 2017.

The arsenal plan began in the middle of August, when Luis Caputo was chairman of Central America. Previously, Federico Sturzenegger sent out the instrument, enabling small savers, with a yield of 10 per cent higher than those with fixed terms and similar dangers.

In the last bid held on 20 November, the Central Bank was paid an annual level of 50% and sent 40,000 million pesos.

In the hands of the Cambiemos Federation, the Median Bank cost 21,000 million money only in the net payments form Lebac in 2016 and 2017 for investing local and foreign investors with a financial capital, a & # 39; Benefits from the very good rates and then on the left.

These letters were converted with a period of 14 days in March 2002 when they resigned from the financial, economic, political and social crisis that indicated to Argentina at the beginning of this century.

With a business break of 53 million pesos and 80% annual levels, the 28-day start began to travel in a & # 39; Financial Banking in August 2002 was a basis for times when many pesos were circulated.

These letters were created by a team of Mario Blejer, then the president of the Central Bank; Aldo Pignanelli, who was a director of the entity; and Eduardo Levy Yeyati, chief of councilors.

It was the instrument that was; at the time this economist got control of the exchange rate, because Argentina was trying to get rid of its & # 39; breaking his financial system, which affected millions of Argentinian savings.

The Lebac was a device used by all President of the Central Bank since its inception, but b. It was Federico Sturzenegger when Cambio al Poder arrived in December 2015 that made them the basic instrument of economic policy.

So, those letters reached 1.28 trillion pesos and represented 11% of the Rural Rural Full-Size or the same as at # 39; Central Bank at the beginning of the year as international resources.

Then they started talking about the "snowball" in Lebac. Every month, the BCRA needed to revitalize the recovery of $ 500,000 million which placed its exchange rate, when the exchange rate was heated.

When Sturzenegger left the Central Bank this year due to failure to & # 39; financial policy to include inflation, the authorities decide to delete Exit and exchange for Litigation Letters (Leliq) that can only buy trading banks.

Leliq stock today stands at 659,633 million pesos, that is, 48.67% of the cash base, currently at 1.35 trillion pesos.

The Leliq represents 24.85% of the 2.6 billion pesos invested in a view and term in Argentine freedom, a NA group statement based on an official data base.

Similarly, the Leliq is equivalent to around 17,241 billion dollars (at current current exchange rate), which is representing 29.41% of the international reserves at Central Bank.


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