Central bank announces new policy guidelines

Argentina’s central bank (BCRA) released policy guidelines aimed at increasing the monetary supply, avoiding major exchange rate fluctuations, and reducing inflation. The monetary policy will support a managed exchange rate float to avoid sharp fluctuations in the value of the currency and will promote a “prudent expansion” of the monetary supply, the bank said. If needed, the bank will assist the Treasury regarding external debt payments.

Argentina’s peso will weaken even further, BNP forecaster

Argentina’s peso, the world’s worst-performing currency against the dollar in nominal terms in both 2018 and 2019, has nowhere to go but down, according to Gabriel Gersztein, the Sao Paulo-based head of global emerging-markets strategy at BNP Paribas SA. He predicts the peso will reach 100 pesos per dollar by the end of 2020, a 40% decline from the official rate now.