Particle.news
Download on the App Store

Argentina Widens Managed Dollar Band as 2026 Program Turns to Rebuilding Reserves

The inflation-indexed corridor aims to preserve the exchange-rate anchor during a year of reserve rebuilding.

Overview

  • From Jan. 2, the Central Bank updates the floor and ceiling of the official exchange-rate band daily by the latest INDEC inflation with a two-month lag to widen the corridor.
  • The 2026 plan targets roughly $10 billion in reserve purchases in its base path, rising to $17 billion in a favorable scenario.
  • The Central Bank says it will keep a contractionary monetary bias while domestic inflation exceeds international levels, calibrating policy to prices, activity and money demand.
  • Financing pressures are immediate, with a $4.2 billion redemption to private bondholders due Jan. 9 to be covered with Treasury reserves and a bank loan, according to reporting.
  • An IMF review in February could reset reserve targets after July’s relaxation, as economists warn reserves are weak and caution that sustained growth depends on further reforms.