Central Bank of Argentina will intervene in the foreign exchange market
The institution seeks to reduce the amount of pesos circulating in the market through different measures that will affect the purchase and sale of dollars
On Monday, the Central Bank of the Argentine Republic (BCRA) announced that it will intervene in the exchange market in order to “aggressively reduce the amount of pesos” circulating in the market.
One of the fields it will intervene is the sale of dollars, despite the fact that in the country an exchange rate was established within the so-called “non-intervention zone“.
The statement issued by the Monetary Policy Committee (COPOM) of the BCRA, the banking institution may sell US currency “even if the exchange rate is below 51,448 pesos”.
When the case arises that the exchange rate is above the established value, the BCRA will increase the daily sale amount for the operations.
These measures will look to reduce the amount of pesos and improve the functioning of the foreign exchange market.
“The COPOM considers that the BCRA should reinforce the contractionary bias of monetary policy intervening in the foreign exchange market to reduce more aggressively the amount of pesos and in this way contribute to the proper functioning of said market”, according to the statement.
K. Tovar
Source: Bancaynegocios
