Exchange Rate

During recent years, prior to the start of the international financial crisis, the Central Bank of the Argentina Republic (BCRA), he had to work hard to preserve the nominal exchange rate that was around $3 more less 10 cents. Great were the criticisms he received the Monetary Authority by this policy which had inflationary derivations. The answer to such criticism by the BCRA was seeking with such action to preserve stability exchange rate and at the same time, accumulate international reserves as an insurance anti-crisis. The turbulent periods claimed responsibility for the actions of the BCRA in the accumulation of international reserves, which prevented the external crisis is installed in the Argentine economy generating unpleasant episodes as they are already accustomed to live the Argentine families. Since the international financial crisis broke out, the dollar in Argentina appreciated slightly passing the $3.10 that averaged up to the $3.15, value that remained until the conflict between the Argentine Government and the field increased uncertainty resulting in output of deposits in the financial system and dollarization of the portfolios. The response of the BCRA that doubled the bet, was carried the dollar trading at a value close to $3.00, together with the decision to apply an increase in passive interest rates, looking this way, stop the dollarization and the flight of deposits at the time of strengthen the nominal anchor of prices. But for a little more than three months, the Economic Outlook is very different in Argentina. So much so that in the day yesterday, the site Argentine El Cronista, reflected the greater consensus among businessmen and analysts of that this week the Argentine Government would confirm a new band of flotation of the dollar with a new floor at $3.50, with the objective of protecting the domestic economy. Here it is worth remembering that to 1 September, the dollar was trading in Argentina around $3.