Argentina Audit Finds US$1 Billion Loss on Gold Hedges
ARGENTINA · ECONOMY
Key Facts
- —The country Argentina is a large IMF debtor with US$49.1 billion in gross reserves.
- —What happened State auditor flags a US$1.023 billion central bank gold derivatives loss.
- —The numbers US$960 million operating loss plus US$62.8 million in option premiums.
- —The response The central bank says its gold position netted US$2.505 billion.
- —What it means for you Reserves are Argentina’s buffer for paying dollar bondholders and the IMF.
- —Still open A separate audit of the gold moved abroad is still pending.
Argentina’s state auditor says the central bank lost over US$1 billion hedging its gold; the bank calls that political.
Argentina’s central bank lost US$1.023 billion on gold hedges in 2025, the country’s state auditor said on Thursday, 8 October. The National Audit Office (Auditoría General de la Nación, AGN), Congress’s auditor, says the bank speculated on gold and got it wrong.
The finding matters to US investors because reserves are Argentina’s buffer for paying dollar bonds and the International Monetary Fund. The loss equals about 2% of the US$49.1 billion in gross reserves the bank reported for Tuesday, 6 October.
The Central Bank of the Argentine Republic (BCRA) rejected the charge the same day. It said hedging is routine and that its gold position, metal and hedges together, earned US$2.505 billion in 2025.
What the Auditor Found
The figures come from the AGN’s audit of the central bank’s financial statements as of 31 December 2025. The AGN found the accounts reasonable, and the BCRA confirms the auditor approved them.
But the AGN singled out derivatives settled in dollars that used part of the bank’s gold reserves as the underlying asset. The AGN itself describes them as hedging operations, meaning protection against a fall in the price of gold.
The AGN put the loss at US$1.023 billion, paid out of the bank’s foreign currency. Perfil reported that US$960 million came from the operations and US$62.8 million from option premiums.
Juan Manuel Olmos, the AGN’s president, said the bank had speculated on the path of gold prices and “erred in the calculation”. He said no loss of this size had appeared in such an audit before, according to Perfil and Infobae.
Olmos also said no such audit had ever shown physical gold reserves used for risky operations, and that no open positions remain. The gold itself posted a large paper gain in 2025, driven only by world prices, the AGN said.
The Central Bank Says Its Gold Hedges Did Their Job
In a statement on Thursday, the BCRA said it hedges all of its gold holdings. The aim, it said, is to shield reserves from a sharp fall in the price of one of their main assets.
When gold rises, as it did in 2025, the derivatives lose money while the metal gains. The bank said both sides must be judged together, and that the net result was “amply positive”.
The BCRA said it has hedged its gold since 2007. Relative to the gold’s value, it said, hedge payments in 2007-2011 were almost double 2025’s, without AGN objections.
The bank stressed that the AGN approved its 2025 statements, which it said showed a record result in its history. It accused the AGN’s leadership of trying to discredit the bank’s management “for purely political purposes”.
“A financial operation cannot be a hedge and speculative at the same time,” the statement said.
A Fight That Began With Gold Moved Abroad
The clash is the latest round in a long dispute over the bank’s gold. The AGN is also auditing the physical gold and its transfer abroad; the draft awaits the BCRA’s reply.
That audit asks why the gold was moved, where it went and whether anyone benefited, Perfil and Infobae reported. The BCRA said an earlier AGN letter on the transfer chose its words carefully without clarifying the facts.
Santiago Bausili, the central bank’s president, has told the Senate every gold movement is documented. According to Infobae, he said part of the bars went in 2024 to the Bank for International Settlements in Switzerland.
La Política Online, citing El Cronista, has reported that the bars are physically held in London.
Under Argentina’s constitution, the AGN’s president is nominated by the largest opposition party in Congress. That puts the audit office in opposition hands while Javier Milei, a libertarian, holds the presidency.
What It Means for You
For holders of Argentine dollar bonds, the disputed loss is small next to US$49.1 billion in gross reserves. The larger question is how the bank uses its gold and how openly it reports such deals.
Washington has a stake: the US Treasury signed a swap deal for up to US$20 billion with the BCRA in October 2025. The bank said in January that it had settled, in December, the swap operations drawn in late 2025.
La Política Online, a Buenos Aires outlet, quoted a source saying funds suing Argentina in London over GDP-linked securities watch the issue. The outlet said the risks depend on contract and collateral terms that have not been disclosed.
What Is Not Known
Neither side has said how much gold the derivatives covered, when they were struck or who the counterparties were. The bank has not shown how it calculated its US$2.505 billion net result.
It is unclear whether gold hedging continues in 2026. Olmos says no positions remain open, while the BCRA describes hedging its whole gold position as habitual practice.
The findings of the separate audit on the gold moved abroad have not been published.
What Comes Next
The BCRA must answer the draft audit on the gold transfer before the AGN finalises it. No date has been made public.
La Política Online noted that the audit also raises questions about the external firms that certified the bank’s accounts. The dispute does not reverse the auditor’s approval of the 2025 accounts.
Frequently Asked Questions
What is Argentina’s AGN?
The National Audit Office (AGN) is the body that audits Argentina’s national public sector for Congress, including the central bank. Its president is nominated by the largest opposition party in Congress.
Did Argentina’s central bank lose US$1 billion on gold?
The AGN says the bank’s gold derivatives lost US$1.023 billion in 2025, including US$62.8 million in premiums. The bank says its whole gold position, metal and hedges together, gained US$2.505 billion.
Why does the central bank hedge its gold?
The BCRA says gold hedges protect reserves against a sharp fall in the gold price. It says it has used them since 2007.
Where is Argentina’s gold?
Santiago Bausili, the central bank chief, says some bars moved in 2024 to the Swiss-based Bank for International Settlements. Local media report they are held in London, and a separate AGN audit is pending.
Does this affect US investors?
Reserves are Argentina’s buffer for paying dollar bonds and the IMF, and the loss equals about 2% of them. The US Treasury also signed a swap deal for up to US$20 billion with the bank in 2025.
Sources: BCRA, statement on its 2025 gold position (8 October 2026); BCRA, international reserves series; BCRA, US Treasury swap agreement (20 October 2025); BCRA, swap operations settled (9 January 2026); Perfil; Infobae; La Política Online; La Política Online, on the gold in London (14 September 2026) (all accessed 9 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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