US EditionArgentina to tie peso band to inflation in exchange-rate overhaul
Argentina's central bank will link peso bands to inflation and aims to accumulate up to $10 billion in reserves to support economic recovery and stabilize the exchange rate.
- From Jan 1, 2026, the Central Bank of Argentina will adjust the peso's trading band monthly based on inflation, replacing the previous 1% shift, Bausili said.
- Aligned with IMF advice, the government framed the change as urgently building reserves to underpin growth and stabilize the economy, with IMF spokesperson Julie Kozack welcoming steps to rebuild buffers and regain market access.
- Monetary policy details show the BCRA plans to increase the monetary base from 4.2% to 4.8% of GDP by December next year, allowing US$10 billion purchases and up to US$17 billion accumulation if demand rises.
- Markets reacted calmly, with the peso firming 0.17% and sovereign bond prices rising about 1.13%, while last week Argentina completed a US$1 billion bond sale.
- Since April Argentina has run a semi-floating currency regime, and analysts warn that an overvalued peso has weighed on exporters and producers, implying an upward path for the wholesale exchange rate.
17 Articles
17 Articles
The President of the Central Bank Dismissed the Lifting of the Stocks; the Director of Arca Resigned
The president of the Central Bank said that the changes in the dollar will not increase inflation. Santiago Bausili assured that the implementation of the new monthly update scheme of the exchange rate bands, to which they will add purchases of reserves, will not generate an acceleration of inflation. In addition, he anticipated that no easing of the exchange rate restrictions is foreseen that involves a total disarmament of the stocks.Milei rec…
Argentina’s Central Bank Ties the Peso Band to Inflation, Targets Reserve Rebuild
Key Points From January 1, 2026, the peso’s band will move with monthly inflation, not a 1% crawl. The central bank aims to buy $10 billion in reserves by end-2026; it is still more than $10 billion short of the IMF’s 2025 reserve goal. The plan is a test of credibility: steady disinflation with reserves, […]
Argentina to Loosen Its Currency Policy and Build Reserves
Argentina loosened restrictions on currency trading and said it will start to rebuild foreign reserves, taking advantage of growing investor confidence in the President Javier Milei’s government to shore up its fragile finances.
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