Argentina Central Bank faces scrutiny over $1 billion gold loss

The Central Bank of Argentina (BCRA) is facing criticism following reports of a $1.023 billion loss resulting from gold hedging operations. Internal instructions within the BCRA have reportedly sought to keep the specific contracts used in these transactions secret, even withholding them from the General Audit of the Nation (AGN).

Sources indicate that Deutsche Bank was one of the counterparties in these operations. This has raised ethical concerns due to the previous high-level roles held by Luis Caputo and Santiago Bausili at the German institution. The loss reportedly occurred because the right to purchase gold was sold at prices around $3,000 per ounce, while market prices surged above $4,000.

While the BCRA and the national government have characterized the AGN's inquiries as politically motivated, maintaining that gold positions ultimately yielded a net gain of $2.5 billion, the bank has refused to publicly identify the specific entities involved in the hedging operations.