Money in Argentina
Central Bank hikes in April
On 27 April, the Central Bank of Argentina (BCRA) decided to hike the LELIQ rate to 91.00% from 81.00%.
The Bank decided to deliver a drastic rate hike in a bid to support the peso amid a sustained selloff in the parallel market and curb runaway inflation. The Bank’s statement highlighted that its decision was “based on the objective of promoting positive real returns on local currency investments and acting to preserve monetary and financial stability”. Argentina’s monetary policy is framed in an agreement with the IMF; the country has committed to gradually moving towards positive real interest rates.
Looking ahead, the BCRA did not give explicit guidance but stated that it would continue to monitor the evolution of the general price level, the dynamics of the foreign exchange market and monetary aggregates in order to calibrate its policy.
Argentina Money Chart
Argentina Money Data
|Money (ann. var. of M2 %)||26.0||22.8||29.0||78.9||59.5|