The new monetary regime makes its debut

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The new monetary regime makes its debut

First week
October 2018

Today, the changes to the monetary and exchange policy plan that was agreed with the IMF were implemented. Our interpretation is that the new monetary plan is one that controls monetary aggregates in a framework of almost free exchange flotation. Nonetheless, both the Treasury and the CB will be able to offer currency. Paradoxically, it is the Treasury that has more freedom of action in the FX market. The CB will only be able to intervene when the exchange rate is outside the exchange band and it is not even forced to do so.