Foreign reserves reached a record-high level for Argentina: they currently account for almost 100% of demand deposits plus cash held by the public (45% in 2001). In addition to providing resources to face possible shocks, foreign reserves are also a deterrent: they limit the chances of success of any speculative movement against the peso.
Essentially, it involves applying a "haircut" to depositors and other creditors to recapitalise the bank, and then quickly making available to depositors the non-haircut portion of their deposits. BCR addresses some of the same issues as deposit insurance, which is currently receiving attention in Australia, in that it quickly restores liquidity for depositors.