He International Monetary Fund (IMF) celebrated the measures taken by the Central Bank (BCRA) regarding exchange rate bands and reserve creation. She was a spokesperson for the international organization, Julie Kozackwho also noted that the fund works “closely” with the Argentine authorities.
“We celebrate the recent market entry and the announced measures to strengthen the monetary and exchange rate frameworkRestore reserve buffers and promote reforms that boost growth. We work closely with the authorities in implementing these important measures“Kozack wrote.
During his press conference to explain the new measures, BCRA President Santiago Bausili acknowledged that although the new system was a government decision, it had previously been discussed with the IMF.
The message from Julie Kozack, the IMF spokesperson
The BCRA announced the start of a “new phase of the currency program.”
He Central Bank reported changes for the this Monday Dollar change straps. According to a statement from the company from January 2026 bands will develop Pace of the latest inflation data.
On the other hand, the monetary authority stated that since January 2026 “will launch a program of international reserve accumulation in line with the development of money demand and the liquidity of the foreign exchange market.”
“In order to consolidate price stability, The Central Bank of the Argentine Republic (BCRA) announces the start of a new phase of the monetary program. “The Monetary Authority’s efforts will give priority to the objective of achieving convergence of domestic inflation to the level of international inflation,” the BCRA statement said.
“The successful progress in resolving macroeconomic imbalances and confirmation of the strength of the economic program in the face of political uncertainty caused by the midterm elections expands the planning horizon and creates favorable conditions for growth, the re-monetization of the economy, etc Accumulation of international reserves,” he added.
“Monetary policy management will aim to ensure this.” The supply of money accompanies the recovery of the demand for money and prioritizes its supply through the accumulation of international reserves. “Monetary programming will define a consistent path for monetary aggregates that makes the disinflation process compatible with the accumulation of international reserves,” the BCRA said.
Changes in dollar bands: what they will look like from January 2026
In this context, the Central Bank stated: “From January 1, 2026 The upper and lower bounds of the exchange rate float band change each month at the rate corresponding to the latest monthly inflation data reported by INDEC.“.
“From January 1, 2026 The BCRA will launch an international reserve building program in line with the development of money demand and the liquidity of the foreign exchange market. The BCRA’s basic remonetization scenario envisages an increase in the monetary base from the current 4.2% to 4.8% of GDP by December 2026, which could be provided through the purchase of $10 billion subject to the provision of balance of payments flows,” he added.
“An additional 1% of GDP increase in money demand could lead to purchases.” 17,000 million US dollarssubject to the provision of balance of payments flows without the need for sustained sterilization efforts,” he noted.
And he emphasized: “The daily execution amount of the reserve accumulation program will be adjusted to the participation of the 5% of daily foreign exchange market volume. The BCRA may conduct block purchases that could otherwise affect the orderly functioning and stability of the market.“.
What will purchasing BCRA reserves look like in 2026?
Specifically with regard to the purchase of reserves, the BCRA announced that it will launch an international reserve accumulation program from January 1, 2026, based on two considerations:
The demand for money
“The designed program is in line with the BCRA estimate for the growth and remonetization of the economy in 2026. The BCRA’s base remonetization scenario envisages an increase in the monetary base from the current 4.2% to 4.8% of GDP by December 2026, which could be provided through the purchase of 10,000 million US dollars, dependent on the provision of balance of payments flows. An additional 1% of GDP increase in money demand could boost purchases to $17 billionsubject to the provision of balance of payments flows without creating inflationary pressures,” he stressed.
“The BCRA will maintain a monetary policy stance that avoids sustained sterilization efforts as long as money demand develops as expected. In the event that money demand development turns out to be lower than expected, The BCRA will take such corrective measures as it deems appropriate in accordance with the economic program“added the statement.
The liquidity of the foreign exchange market
“In order to promote the continuity of the orderly functioning and stability of the foreign exchange market, the reserve purchase program will be compatible with the daily liquidity of the foreign exchange market. First, the daily execution amount will be adjusted to a proportion of 5% of the daily volume of the foreign exchange market. This operational flexibility is in line with the observation that the volume traded daily in the foreign exchange market has very significant fluctuations,” the BCRA said.
“For example, in recent weeks the volume has been reduced by a third based on the average calculation $600 million daily on an amount of around $200 million (less repo transactions). In addition to operations in the MLC, the BCRA may conduct block purchases that could otherwise affect the orderly functioning and stability of the market,” the statement said.
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