Argentina is tightening again. The BCRA has drained liquidity with new reserve rules, sending short-term rates swinging wildly. Inflation edged higher, but the peso still holds inside its band. IMF cash has landed, BOPREAL bonds are gaining new uses, and the system is under strain—but the reform path remains intact.
Monetary Policy
The Central Bank has tightened the screws. New daily reserve requirements now force banks to lock up cash, draining liquidity and sending short-term interest rates on a rollercoaster—from as low as 2% to well over 100%. It’s a blunt reminder that while benchmark rates are gone, the BCRA still has levers to pull. This is less about easing, more about enforcing discipline.Look back to our June report where we flagged the shift to market-determined rates and July’s note on volatility after the removal of “Lefis”
IMF & Financing
The IMF Executive Board has now approved a USD 2 billion disbursement, confirming July’s staff-level deal. It’s a vote of confidenc...
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