The Vice Governor of the Central Bank of Argentina (BCRA), Vladimir Werning, presented an overview of the country’s monetary policy evolution to investors in Washington D.C. The presentation, titled “The Evolution of the Monetary Aggregates Regime in Argentina: From Stabilization (2024) and Regime Transition (2025), to Demand-Driven Remonetization (2026+) Leading to Reserve Accumulation,” outlined key stages in Argentina’s approach to monetary stabilization.
Werning explained that in 2024, Argentina adopted a monetary target aimed at moving away from a high inflation regime characterized by fiscal dominance and excess money supply. For 2025, he discussed how monetary goals are being adjusted as the country seeks to end financial repression, such as currency controls, and address binary risks related to elections.
He noted several challenges during this transition period. “Facing ‘transition costs’ in the short term: A nominal anchor based on money quantity requires flexibility in exchange rates and interest rates,” Werning said. He added that progress is already visible domestically and is expected to yield long-term benefits: “Managing ‘transition costs’ on the domestic market: Progress is already visible and will bring long-term benefits.” Additionally, he described how an extraordinary but temporary electoral shock had suppressed money demand: “Managing ‘binary risks’: An extraordinary but temporary electoral shock depressed money demand.”
Looking ahead to 2026 and beyond, Werning emphasized managing monetary objectives to support genuine recovery in money demand and accumulation of reserves.
The presentation was delivered in English; a Spanish version will be made available soon.
