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BCRA Opens Consultation to Overhaul A3500 Official FX Reference Rate

The central bank is seeking feedback through Nov. 14 on a proposal to base the daily reference rate on volume-weighted executed trades with automated outlier controls.

Overview

  • The proposal would replace the quote-survey method set by Comunicación A3500 with a calculation derived from actual market transactions weighted by traded volume.
  • The Banco Central de la República Argentina says the change targets greater precision, representativeness and transparency in the wholesale reference rate.
  • Automated processing and outlier exclusion are intended to reduce operational errors and improve the traceability and auditability of the published figure.
  • The Tipo de Cambio de Referencia is published daily and is used for banks’ accounting, contract settlements and pricing of USD-linked instruments.
  • Public comments are open until Nov. 14, and the central bank notes several regional peers already use trade-based weighted averages, unlike Argentina, Brazil and Mexico.