Weekly

Weekly Reports

The Central Bank Charter reform will free up AR$ 47 billion to finance the Treasury

The Central Bank Charter reform will free up AR$ 47 billion to finance the...

Second week
of March 2012
The bill that will modify the Central Bank Charter is zipping through Congress. It was passed quickly in the lower chamber committee. By next week the bill should be on its way to the Senate for its final approval. One important change that was made to the original project was to double the temporary advances the ...

Congress will reform the Central Bank’s charter and the Convertibility law

Congress will reform the Central Bank’s charter and the Convertibility law

First week
of March 2012
The executive introduced a new bill to modify the Central Bank’s charter and some articles of the Convertibility law. The government aims is to give the Central Bank multiple goals and free up reserves for debt payments eliminating the requirement for reserves to cover the entire monetary base.

The Central Bank contracted the monetary base by AR$ 14.6 billion this year

The Central Bank contracted the monetary base by AR$ 14.6 billion this year

Fourth week
of February 2012
The Central Bank purchased US$ 1.9 billion in the FX market in the first 7 weeks of the year, thanks to the FX regulations. This figure is 33% higher than in the same period last year and is 56% of the US$ 3.3 billion made in dollar purchases in all of 2011 – a year that was marked by strong portfolio dollarizatio...

The volume traded in the FX market fell strongly due to regulations: - 40% y/y

The volume traded in the FX market fell strongly due to regulations: - 40%...

Second week
of February 2012
The volume traded in the FX market has collapsed since the FX regulations came into place. In the months before, the average volume traded in Forex-MAE - where banks operate and more than 60% of total operations take place - averaged US$ 7.5 billion per month. Since the regulations, the average fell to around US$ 4....

Time deposits are booming thanks to the FX market regulations: they grew 6.7% in January

Time deposits are booming thanks to the FX market regulations: they grew 6...

First week
of February 2012
The tightening of the FX market regulations and the strong increase in the monetary base in the last quarter led to a boom in time deposits (they exhibited record growth in January: 6.7%) and a fall in interest rates. Deposits grew 3.1% and accumulated 29.5% annual growth in the last year. Loans, meanwhile, are de...

The Central Bank raised capital requirements: dividends cannot be transferred abroad

The Central Bank raised capital requirements: dividends cannot be transfer...

Fifth week
of January 2012
The Central Bank approved two new measures to increase capital requirements for banks. Behind the sudden interest in accommodating the regulation to the Basel II and III requisites lies an attempt to reduce dividend transfers abroad, in a context of dollar scarcity and FX market regulations. One of the measures or...

The monetary base has grown AR$ 36.5 billion since the FX market regulations came into place

The monetary base has grown AR$ 36.5 billion since the FX market regulatio...

Fourth week
of January 2012
The monetary context changed radically with the FX market regulations put into place on October 31st. In the months of high portfolio dollarization (May-October), the Central Bank was forced to give up reserves, absorbing pesos from the system, and later injecting pesos via Lebacs (with partial maturity renewals and...

FX market regulations and repatriation allowed the Central Bank to have record dollar purchases

FX market regulations and repatriation allowed the Central Bank to have re...

Third week
of January 2012
The Central Bank purchased US$ 2.5 billion in the FX market, a monthly record since the end of Convertibility. With the restrictions – both formal and informal – to dollar purchases, and the repatriation of insurance investments (as well as the liquidation of exports’ proceeds of mining and oil) the CB recovered i...

The Central Bank announced the 2012 monetary targets

The Central Bank announced the 2012 monetary targets

First week
of January 2012
The new targets are in line with last year, although they imply slightly lower growth in the monetary aggregates. The new ranges are still very lax and do not aim to reduce inflation. The Central Bank approved the new monetary targets in the last workday of the year. In line with expectations, the monetary ag...

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