The healthcare development and the unprecedented fiscal and monetary incentives eased global and domestic economic recovery during the last months of 2020. From now on, the BCRA will continue to help bring the economy to normal in accordance with the fiscal strategy of the National Government, with the aim of laying the macroeconomic foundations for economic development with social equality. To that end, in 2021, the BCRA will develop its monetary, foreign exchange, lending and financial policies in line with the following core objectives:
1. . To Help Bring the Economy to Normal. As the risks associated with the COVID-19 pandemic lessen and the preventive and compulsory social distancing is progressively being lifted, the monetary policy will focus on absorbing the countercyclical efforts to preserve monetary and financial balance.
2. To Develop a Process to Restore Trust in the Domestic Currency. Strengthening the domestic currency to be used as store of value for Argentineans is a long process. Achieving this objective will boost financial intermediation and deepen the domestic capital market, thus reaching sustainable economic growth.
3. Sustain the Gradual Disinflation Process. Reducing the inflation rate consistently and gradually through the effective administration of monetary, financial and foreign exchange conditions. This process includes meeting the essential financing needs of the Treasury, in accordance with the BCRA’s Charter.
4. Contribute to the External Balance. The BCRA aims at adjusting its policies towards exchange rate stability and strengthening its position of international reserves. Until Argentina’s exporting capacity is boosted, foreign exchange regulations will help to minimize potential pressures in the forex market.
5. Boost the Recovery of Credit to the Private Sector. Credit lines are necessary tools for productive development. Within this framework, the credit channel will be boosted in reply to the financing needs of the private sector. In particular, the BCRA seeks to promote productive and technological development and increase the share of credit available to micro-, small- and medium-sized enterprises (MSMEs), whether for the provision of working capital or for investment purposes.
6. Preserve Financial Stability. The BCRA will keep micro- and macro-prudential regulations up-to-date in line with best international practices, without neglecting the intrinsic characteristics of the Argentine financial market. Moreover, the BCRA will continue monitoring financial institutions in order to foresee and address any potential vulnerabilities, thus, preserving adequate levels of liquidity and solvency within the ensemble of financial institutions.
7. Promover el desarrollo del mercado de capitales. Reconstruir, consolidar y profundizar de manera coordinada con otros organismos del Sector Público Nacional el mercado de capitales local permitirá simultáneamente aumentar el financiamiento, público y privado, y el abanico de posibilidades de inversión de ahorristas, ampliando la canalización de fondos hacia actividades productivas y de políticas de inclusión social.
8. Promote Financial Inclusion. Promoting financial education and expanding and democratizing the scope of financial services are necessary conditions that will allow all the segments of the population to contribute to and benefit from the economic growth.
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December 30, 2020.