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Argentina Sets Inflation-Indexed FX Bands for 2026 as Sol and Peso End Year Stronger

The central bank will pair the new regime with preannounced dollar purchases to rebuild reserves, contingent on debt rollover and fresh financing.

Overview

  • From January 1, 2026 the BCRA will float the peso within bands whose floor and ceiling are updated monthly by official INDEC inflation with a two‑month lag.
  • A reserve‑buying program starts the same day, initially targeting about 5% of daily spot market volume, with scope for block purchases to stabilize trading.
  • Officials signaled a US$10–17 billion reserve accumulation goal that hinges on rolling Treasury maturities with private funding, after missing IMF reserve targets and with net reserves still negative.
  • The government will free CERA deposits below US$100,000 in January—potentially unlocking more than US$20 billion—alongside ongoing FX liberalization and new dollar debt issuance.
  • Regional markets closed 2025 with a weaker dollar: Peru’s interbank rate ended at S/3.3640 on Dec 30 for a 10.6% annual drop, Mexico’s peso hovered near 17.99 per dollar with roughly 13–13.8% gains, and Peru’s construction grew 12.5% in November, pointing to near‑6% growth for 2025.