BCRA expands bank bond quotas and extends put unwinding

The Central Bank of the Argentine Republic expanded a quota set in May 2025 that regulates commercial bank holdings of sovereign debt based on past repo balances. Through Communication A 8483 on September 17, 2026, the monetary authority allowed lenders to rotate short-term peso holdings, such as capitalisation notes, into longer-term bonds, including dollar-linked and dual instruments.

The measure also extends the timeline for banks to dismantle remaining put option positions valued at 5.6 trillion Argentine pesos. The unwinding horizon was broadened from 12 months out to 24 and 36 months.

The decision follows a drop in Treasury debt placement maturities. Placement tenors reached 938 days three months ago, but fell to between 111 and 131 days in two of the past three auctions.

The central bank stated that overall public sector exposure limits remain unchanged and the total bond stock will not increase. Bank exposure to the public sector stood at 30.6% of total system assets, down from 48.6% during the monetary surplus conditions of 2023.