Argentina’s central bank will increase intervention in the foreign exchange market being able to sell dollars in the spot market even if the FX is below AR$ 51.448, while the amount and frequency will depend on market dynamics.
If the FX is above AR$ 51.448, the Central Bank will increase from USD 150 million to USD 250 million the amount of the daily sales.
In all cases, monetary base increase resulting from these sales will be deducted from the target. In this way, the Central Bank will be able to absorb the excess liquidity when the FX falls below AR$ 51.448 and intensify the tightening of the monetary policy when the FX hikes above the upper floating band. Finally, the Monetary Policy Comittee confirms its decision not to buy foreign currency in the spot market until June 2019 if FX is below AR$ 39.755.
In addition, the IMF spokesperson Gerry Rice made a statement about the Central Bank announcement saying that the IMF supports these measures, which are well calibrated to the challenges Argentina is facing.
- Inicie sesión o registrese para enviar comentarios