The Central Bank of the Argentine Republic president said on April 29 that the stabilization program implemented since late 2023 aims to reduce inflation, anchor price expectations, and stabilize the exchange rate. The president stated these goals are in line with traditional stabilization programs and emphasized that achieving them would provide financial stability to encourage economic growth.
The speech addressed the importance of strong fiscal and monetary fundamentals for anchoring long-term expectations. According to the president, recent months have shown positive results from the program: interest rates and their volatility have decreased, inflation expectations remain anchored, and the exchange rate has been stable. The Central Bank has also purchased more reserves than anticipated by markets.
The address reviewed several key areas: external balance, domestic balance, currency and monetary policy framework, and credit cycle. The external sector was described as robust due to factors such as a reversal in dollar demand following elections, a strong reserve accumulation program with $6.9 billion purchased so far this year, structural changes boosting exports after exchange rate flexibility in April 2025, and elimination of fiscal deficit breaking historical patterns between fiscal imbalance and current account deficits.
Domestically, while recent consumer price index data showed higher-than-desired inflation levels attributed to temporary shocks—including shifts in money demand before elections—the Central Bank remains focused on converging national inflation toward international levels. Relative prices for items like meat, public tariffs adjustments earlier this year, seasonal education costs in March, and global oil price impacts were highlighted as drivers behind recent movements.
Regarding monetary policy, it was noted that Argentina now operates under a floating exchange rate regime with an upper band providing automatic stability. The banking system is reportedly robust with high capital levels; credit to the private sector is increasing after years of low activity; non-performing loans peaked but are now stabilizing or improving across most banks.
Concluding his remarks, the president reiterated commitment to fiscal equilibrium and strengthening Central Bank reserves as part of efforts toward a more deregulated economy: “Our ultimate goal is clear: A stable economy that grows predictably.”
