Gold position yields $2,505 million net gain in 2025
The Central Bank of the Argentine Republic generated a net positive result of $2,505 million from its gold position during fiscal year 2025. The performance reflected gold price gains offset by hedging costs across the central bank's entire holdings.
Hedging total reserves since 2007
The Central Bank of the Argentine Republic (BCRA) implemented financial hedging operations covering 100 percent of its gold position throughout fiscal year 2025 to shield international reserves from potential price drops.
Because underlying gold appreciated, derivative contracts used as insurance incurred expected losses, leaving a net gain of USD 2,505 million when assessed jointly.
Hedging operations have formed part of regular reserve management at the central bank since 2007.
Between 2007 and 2011, payments for comparable hedging operations relative to the market value of the gold portfolio were almost twice as high as those recorded in 2025, according to the central bank.
Auditor approval and political friction
External auditors and the Auditoría General de la Nación (AGN) raised no objections to the hedging program during the 2007–2011 period or subsequent audits.
The AGN approved the BCRA financial statements for 2025, which marked the largest equity expansion in 20 years.
However, the central bank rejected recent accusations from current AGN leadership, which characterized the hedging program as speculative.
The BCRA stated that an operation designed to protect reserves cannot be speculative.
Prudence overshadowed by politics
The statement offers welcome clarity on how routine derivative hedges function alongside physical reserve assets.
However, trading public accusations with state auditors erodes institutional credibility.
Financial prudence matters, but dragging reserve management into open political combat damages institutional trust.