Objectives and Plans for 2025

During 2025, the BCRA will continue to focus on its fundamental role of further consolidating the decline in inflation. After having closed the primary sources of fiscal monetary expansion and limiting the interest payments made by the BCRA, and having established controls over the evolution of monetary aggregates, the economy is expected to continue to move out of the current situation of excess liquidity in pesos as money demand continues to strengthen. In addition, the BCRA will continue to adjust regulations so that commercial transactions may be carried out in any currency chosen by the parties, thereby promoting the free competition of currencies.

Regarding the exchange rate, to the extent that inflation continues to slow down, it will be possible to adjust the crawl rate and, eventually, move towards a more flexible exchange rate regime once inflation expectations are firmly anchored and the fiscal surplus fully performs its role as the essential anchor of the economy. The consolidation of the macroeconomic framework will help to continue reducing country risk, thus enabling the National Treasury to regain access to international debt markets to finance the rollover of principal maturities, if necessary and so decided.

We will keep on strengthening the BCRA's balance sheet while rebuilding the net international reserves. As certain conditions are met, progress will be made towards the removal of the remaining foreign exchange and capital controls and, after an orderly normalization process, this will lead to the definitive unification of the foreign exchange market. A new program with the International Monetary Fund (IMF) or an agreement with private investors may allow for a quicker, definitive solution to the inherited problem of BCRA's stocks.

Looking ahead to next year, financial intermediation with the private sector is expected to continue expanding, within a context of lower inflation levels and economic activity growth, driven by the gradual evolution of the current incentive regime for large investments (Régimen de Incentivo a las Grandes Inversiones, RIGI), and the gradual removal of barriers and distorting regulations. There remains a significant opportunity for credit to deepen in the economy, leading to further increases in exposures to intrinsic risks to the activity and, eventually, in the sector's coverage levels. In this context, the BCRA will continue aiming its policies and financial institutions’ regulation and supervision to promote financial stability.

The BCRA will keep micro and macroprudential regulations up to date, in line with the context of the Argentine financial system, including the local adjustment of global best practices, particularly those established under the recommendations of the Basel IV framework. The ultimate goal is to design a local regulatory scheme that takes into account international guidelines and local characteristics such as financial institutions' business models or risk materiality.

The BCRA will continue to promote new payment mechanisms and improve the existing ones so as to enhance competition among market players, expand electronic payment options and increase security, ultimately leading to a better experience for consumers. In this sense, any necessary adjustments will be made to the various transfer methods available under the “3.0 Transfers” program and to other electronic payment instruments such as direct debits, instant debits (DEBINs) and e-checks. Likewise, measures to achieve full interoperability across the ecosystem’s different levels, both in pesos and in other currencies, will continue to be strengthened.

In addition, the Interbank Commission on Means of Payment of Argentina (Comisión Interbancaria para los Medios de Pago de la República Argentina, CIMPRA) will work on the gradual and phased implementation of QR code payments in public transport. Initially, CIMPRA will work on the possibility of making payments using the funds deposited in accounts, i.e. a trip paid by transfer (viaje con transferencia, VCT) and, in subsequent stages, using cards. The objective is to build a standard and simple system for all players nationwide (wallets and means of transport) so that the VCT may be used without requiring bilateral integration and/or adjustments, in all the means of transport covered by Executive Order 698/24 throughout Argentina.

Once the above definitions have been implemented, interoperable e-wallets registered with the BCRA that wish to offer QR code payments in means of transport will be able to allow users to make payments by displaying QR codes in their apps across all transport services in Argentina, regardless of who displays or scans the QR code, guaranteeing the interoperability required by the above executive order.

As regards e-checks, in order to streamline consumer service, the BCRA will continue to work with financial institutions so that they offer the full service (issuance, management and collection) through mobile banking.

The BCRA will continue to support the implementation of the policies promoted by the National Government that have an impact on the national payment system, as it did during 2024 with projects such as digital tips, the promotion of local payments in foreign currency, the creation of special accounts for asset regularization and related operations, electronic payments for transport services and the prevention of compulsive gambling.

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December 26, 2024