Overview

• August’s monetary base rose 14.4% to ARS 44.2 trillion, which the BCRA says reflects regulatory encaje increases, with underlying expansion near 0.4% after adjusting for the rule change.
• Private transactional money (M2) contracted 1.3% in real terms as cash in the public’s hands fell 0.9% and sight deposits declined 1.5%, signaling tighter liquidity.
• Credit to the private sector slowed, rising just 0.4% in August, with commercial lending lines posting a contraction.
• Private-sector dollar deposits fell US$281 million to US$32.3 billion in August after four months of gains, even as retail dollar purchases since April exceeded US$10 billion.
• Consultants report the Treasury sold roughly US$350 million since mid-August, cutting its BCRA dollar balances by about US$356 million, while gross reserves rose US$1.12 billion on a US$2 billion IMF disbursement.