Argentina will adjust its currency exchange bands according to the inflation rate starting in 2026, the Central Bank announced on Monday. The monetary authority will also begin to accumulate international reserves, something it had previously been reluctant to do for fear of driving inflation.

“We entered a phase in the economy that will be characterized by growth and remonetization,” Central Bank President Santiago Bausili said at a press conference on Monday afternoon. He called the new policies “very consistent with the downward path of inflation” and said the changes were possible because Argentina’s political scenario had stabilized.

The government had a strong performance in the October mid-term elections and became the largest bloc in the Lower House.

The International Monetary Fund (IMF), which had been pushing for reserve accumulation and a more flexible exchange rate policy, celebrated the announcement. 

“We are working closely with the Argentine authorities as they implement these........

© Buenos Aires Herald