“From now on, the amount of money will remain the same or will be reduced – if the central bank (BCRA) were to sell dollars” in the market called the Single Free Exchange Market (MULC).
President @JMilei announcing at this moment that the last tap of monetary emission is being closed.
From now on the amount of money remains the same or is reduced (if the Central Bank were to sell dollars in the MULC).
That is, if the Bcra were to buy dollars at the Mulc, the issue…— totocaputo (@LuisCaputoAR)
July 13, 2024
“That is, if the BCRA were to buy dollars in the MULC, the equivalent issuance of pesos will be sterilized by the sale of equivalent dollars in the (stock market) cash settlement market (CCL),” he specified.
The decision will come into effect on Monday.
“The last tap of peso issuance is closed: the issuance of pesos is stopped for each dollar of the external sector that is liquidated. This deepens the monetary policy that has been carried out. It is one of the most relevant news of recent times. Inflation RIP,” concluded Minister Caputo.
The five-month streak of inflation slowing was cut short in June, when it registered 4.6%, while Argentines are still feeling the scourge of rising prices amid a repetitive economic crisis.
With information from Reuters
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