Overview
- Effective January 1, 2026, the central bank will adjust the peso’s trading-band floor and ceiling each month by the prior month’s official inflation rate, replacing a preset 1% crawl.
- The BCRA outlined plans to buy up to $10 billion in foreign currency, with potential overall reserve accumulation near $17 billion depending on balance-of-payments flows.
- Monetary policy guidance targets expanding the monetary base to 4.8% of GDP by end-2026 from roughly 4.2% to match a gradual recovery in demand for pesos.
- The IMF welcomed the measures, and initial markets were steady-to-firmer, with the peso up 0.17% to 1,438.5 per dollar, the S&P Merval up 1.13%, and sovereign bonds higher.
- Analysts say indexing the band reduces overvaluation risk and supports more predictable reserve building, with daily FX purchases initially capped at about 5% of market volume and no hard obligation to buy.