Tuesday , November 24 2020

What happens to the dollar in 2019?

In early October it The Argentine Central Bank (BCRA) has established a "non-intervention zone"which kept the dollar for the sales segment between $ 34 and $ 44 pesos, and adjusted daily at a rate of 3% per day. Month.

For the year beginning, the non-intervention zone limits will be updated daily at a monthly rate of 2% starting at 37,117 and 48,034 pesos per dollar. with a daily update of up to 2% per month. If you follow the same path as this year, you can expect the currency to remain at the center of these values.

This means that if the peso is depreciated in such a way that the exchange rate is above the upper limit of the non-intervention zone, BCRA can sell dollars at deals up to $ 150 million a day.

In this way, the central bank will pull the pesos it achieves for the dollars, strengthening the contraction of the monetary base when it is most needed: before a marked fall in demand for money.

On the contrary, it would allow BCRA to buy foreign currency through bids of up to $ 150 million a day before a quick nominal charge. The monetary base can only grow if there are clear signs of confidence in the peso.

The priority of BCRA

In line with the objectives set by the monetary authority, "promoting financial stability and development" is a priority. In this context, they will continue to "promote savings instruments in national currency" and will continue to facilitate access to banking in different types of businesses.

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