Emerging Markets Rates and Currencies Handbook

Interest Rate There are Republic of Argentina bonds denominated in ARS and issued at fix rate, floating rate, dollar-linked and inflation-linked. However, there is no interest rate swap nor interest rate option markets. BADLAR: Average interest rate paid on ARS time deposits with a tenor between 30 and 35 days and a size of ARS 1,000,000 or more. Badlar is widely used as a benchmark in contracts. FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Market  ✗  ✗ ✗ ✗ ✗ Offshore Market ✗ ✗  ✗ ✗ ✗  Onshore Volume (MM USD Daily) Offshore Volume (MM USD Daily) Onshore Max Tenor (Or Typical Tenor For Spot) Offshore Max Tenor (Or Typical Tenor For Spot) Onshore Typical Deal Size (MM USD) Offshore Typical Deal Size (MM USD) Onshore CitiFX Pulse Capabilities 600 - 900 N/A T+2 N/A 1-5 N/A  N/A N/A N/A N/A N/A N/A ✗ 400 - 500 10 1 year 1 year 3-5 3-5 ✗ N/A N/A N/A N/A N/A N/A ✗ N/A N/A N/A N/A N/A N/A ✗ N/A N/A N/A N/A N/A N/A ✗ N/A By orders N/A 2 years N/A 5 ✗ Offshore CitiFX Pulse Capabilities ✗ ✗  ✗ ✗ ✗ ✗ Source: Citi indicative information Market opening hours and liquidity during the day Fixing There are two FX fixings: PPN (Precio Promedio Negociado): PPN is computed on the transactions closed between financial entities in the electronic platform SIOPEL and published by the MAE on a daily basis. It is the main fixing rate used for offshore contracts. It is the weighted average rate of all spot transactions with amounts greater than 500,000 USD traded until calculation time. The PPN is calculated every day at five different times (11am, 12pm, 1pm, 2pm and 3pm). PPN Bloomberg Ticker: {ARS MAEM Curncy} “A” 3500 BCRA FX Reference Rate: The BCRA FX Reference Rate is used exclusively for onshore contracts and is calculated based on BCRA Communication “A” 3500. The BCRA requests bid/ask quotes from authorized FX dealers in three rounds of 15 minutes between 10am - 11am, 12pm - 1pm and 2pm - 3pm. The final rate is the arithmetic average of the internal market quotes of each period. Regulation Spot: Spot transactions are regulated by the BCRA (below is a summary of current regulations). Forwards: Currently, there is no full-deliverable forward market in Argentina. NDFs: