Weekly

Weekly Reports

The G20, the G2 and a relief for emerging markets

First week
of December 2018
The G20 summit this weekend in Buenos Aires was highly positive, and the final declaration document took global trade, climate sustainability, economic policy, immigration, the future of employment, education, and gender equality as its core topics. On the short run, the most important event was the bilateral meetin...

Hawks and doves swirling around the Federal Reserve

Fourth week
of November 2018
The events on the international scene are providing arguments for the Federal Reserve to perform a smaller rise of rates in 2019. In their September meeting, the US Central Bank published their latest “dot plot”, an internal survey of members in which 3 increases of rates were foreseen for next year. Currently, the ...

Tax pressure is expected to break records in 2019

First week
of November 2018
The 2019 Budget Bill foresees an increase in tax revenues compared to this year, stating that primary equilibrium will be achieved through a correction in both expenditure and revenues. Although the counterpart of higher tax revenues is less available income for the private sector, the need to meet the fiscal target...

The monetary policy according to the letter of intent with the IMF

Fifth week
of October 2018
The International Monetary Fund has published the Staff Report linked to the approval of the new agreement with Argentina. In the letter of intent, we can find a section on monetary policy with some already-known concepts and some new ones. Our interpretation on the document’s clarifications is that, if they were fo...

Although we don’t see them, Lebacs are still there

Fourth week
of October 2018
Last week, the CB completed the third stage of the Lebacs stock cancellation program, released in mid-August. The target of gradually eliminating a 1-trillion-pesos stock is being achieved. Banks are migrating their holdings to Leliqs and the amount invested in Lebacs by non-banking participants has migrated to doll...

A crawling band could help to coordinate expectations

Fourth week
of September 2018
During the last few days, the alternative that the Central Bank might start using a crawling band started to arise. In an economy where the dollar’s value is still the most important nominal reference to set prices and expectations, it is highly important to avoid big fluctuations in the exchange rate. A c...