(Bloomberg) — Argentina’s central bank sent part of its gold reserves abroad in recent weeks to be validated for financial use, a move that could give the country some much-needed flexibility, according to people with direct knowledge of the matter.

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Once certified, the gold could eventually be used as collateral to obtain financing, according to one of the people, who asked not to be identified discussing private information. Before the move, about half of Argentina’s gold was in domestic vaults with the other half in London, another person said.

Officials from the central bank, known by its Spanish acronym BCRA, declined to comment on the matter.

The monetary authority separately confirmed Monday it had sent gold between its accounts, mentioning both ones in the country and others abroad. However, the bank didn’t say how much of its nearly $5 billion in gold was shipped, for what reason or to where.

Bank officials also criticized what they called “irresponsible” reports about the gold going abroad, emphasizing that management of reserves has always been kept confidential.

Newspaper Pagina 12 published a video Aug. 19 of a truck emblazoned with the BCRA logo driving on the highway, reporting that it was en route to the main international airport in Buenos Aires with $250 million of gold bars.

The gold maneuvers highlight the long-term challenges Argentine President Javier Milei faces. Precariously low international reserves are impeding his ability to lift currency controls and raising investor concern about his administration’s ability to pay down its debts.

Economy Minister Luis Caputo said last week that the government would make debt payments due in January 2025, but wouldn’t seek new international financing until early 2026.

It’s not clear how Caputo and Central Bank Governor Santiago Bausili will use the gold that’s been transferred abroad to be certified. But the economy minister has already said the government is negotiating a special purchase vehicle, or repo agreement, with commercial banks.

To be considered valid for financial use, gold must meet standards set by the London Bullion Market Association. Once certified, bars can be traded freely between institutions within the market, according to the LBMA website.

Argentina’s central bank has more liabilities than cash, a problem known as net negative reserves. A balance sheet in the red has long fueled investor distrust of the peso and kept most sovereign debt hovering below 60 cents to the dollar, though it’s rallied since Milei won power last year. Net reserves are currently at about negative $6.9 billion, according to local brokerage Portfolio Personal Inversiones.

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The central bank already used some of its gold during Federico Sturzenegger’s tenure as head of the institution from 2015 to 2018. At the time, it carried out futures operations to earn returns on a portion of its gold reserves.

Caputo defended sending the precious metal abroad in a July interview with local television channel LN+. “If you have gold abroad, you can obtain a return — and the country needs to maximize the returns of its assets,” he said.

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