The Argentine government has decided to modify the exchange rate band system and launch a program to accumulate reserves. This measure is considered very positive and aligns with market expectations and the requirements of the International Monetary Fund (IMF). According to Agencia Noticias Argentinas, analysts agree that this is a significant step. The Central Bank of the Republic of Argentina (BCRA) announced that starting in January 2026, the ceiling and floor of the floating exchange rate will be adjusted monthly in line with the latest monthly inflation data from INDEC. Gustavo Neffa, director of Research for Traders, stated that this is a sound policy. Previously, the exchange rate band was fixed at 1%, which was unsustainable with inflation at 2.5% in the last month. The accumulation of reserves was the market's most demanded factor. This measure will force the economic team to double its efforts to rebuild reserves, which, he believes, the markets will celebrate tomorrow. Analysts at Puente also consider the announcement extremely positive, as it addresses several issues: the exchange rate's proximity to the upper band limit, the low level of international reserves, and the deviation from the IMF program. They emphasize that this measure was expected by both the market and the IMF. Meanwhile, Aldo Abram, executive director of the Libertad y Progreso foundation, called it good news that a mechanism for purchasing reserves has been made transparent, determining that any increase in demand for pesos will be met with issuance for currency purchases. He also added that initially, the current increase in preference for holding pesos should be used to eliminate the distortions caused by the increase in reserve requirements and rigidities in monthly obligations.
