Argentina's central bank loses another $348 million in gold operations, marking two consecutive years of failed strategies.

1. According to an analysis of the financial statements from the Central Bank of Argentina, as of September 30, the bank’s gold investments had incurred a loss of $348 million. After losing approximately $1 billion in 2025, its investment strategy suffered another setback. In 2025, the central bank sold call options and bought put options, betting on a drop in gold prices. However, due to a significant increase in the price of gold, estimated losses totaled between $875 million and $1.023 billion. In 2026, as gold prices fell at the end of September, the central bank did not maintain the same hedging position and recorded further losses.2. These operations were directly overseen by Governor Bausili and executed by trading director Klein. Due to limited and non-transparent disclosures, outsiders can only provide estimates. Former Central Bank Vice President Carrera pointed out that, following the 2008 financial crisis, central banks worldwide have shifted their reserve management focus from seeking profits to ensuring liquidity, emphasizing the importance of transparency in investment policies.3. An audit report indicated that last year, the central bank lost over $1 billion on “zero-cost collar options.” The central bank stated that this was a hedge against declining gold prices but did not disclose the details of the agreements or its counterparties. Its gold holdings remained unchanged, but as of September 30, the value of gold reserves had declined by $348 million. In 2024, the central bank achieved a 27.1% return through valuation but did not use a similar options strategy; when gold prices surged in 2025, it chose to hedge instead, missing out on about one-third of the gains, leading to increased external scrutiny.