Measures taken

2017

During the last year, work continued on the three strategic objectives of the Central Bank:

• – Monetary stability: sustainable and systematic reduction of the inflation rate.
• – Financial stability: development and deepening of the domestic financial system, in conjunction with macroprudential supervision and regulation of the sector in accordance with the best international standards.
• – Banking, financial inclusion and electronic means of payment: reduction in the use of cash, streamlining and greater security in transactions, greater financial education.

The following measures were taken, among others:

• – Launch of the Inflation Targeting Regime with the 7-day pass rate as a reference rate
• – Enabling banks to pay interest on deposits in current accounts
• – The DEBIN began to be operational
• – Push for banks to invest in fintech
• – Facilitation of the use of electronic transfers for payment of salaries
• – Promotion of competition in the credit and debit card market
• – Boosting the bank alias instead of the 22-digit CBU
• – Development of more accessible financial services
• – Relaxation of flow transport regulations
• – Remote opening of demand accounts for individuals
• – Mortgage loans in UVA totaled $56,300 million granted
• – The BCRA removed limits for bank transfers
• – Expansion of financing to exporters
• – Promotion of the installation of non-bank ATMs
• – Simplification of the mortgage loan process
• – Since June 1, all bank accounts have a CBU alias
• – The BCRA increased the rate of destruction of damaged banknotes
• – Publication of statistics on the UVA market
• – The rules on indebtedness of the provinces are modified. Stricter limits were imposed on the indebtedness of the provinces
• – Facilitation of the procedure for opening branches
• – Elimination of remnants of the exchange clamp and simplification of foreign exchange regulations in general
• – Authorization to submit tax affidavits to banks on a voluntary basis
• – New $20 bill launched
• – Publication of the new wholesale rate for fixed terms
• – Replacement of banks under the incognito customer modality

Below are the advances, grouped into three strategic thematic areas: Monetary and exchange rate policy, development and deepening of the local financial system, and banking and financial inclusion and means of payment.

• Citizenship Benefits
• – Freedom, stability and predictability for the management of personal, family and business finances.
• – Stimulation of long-term economic growth and improvement in income distribution thanks to the reduction of inflation.

Inflation fell in 2017

1 To calculate the year-on-year variations for 2016, the CPI-NP (weighted average by expenditure based on the CPIs of the City of Buenos Aires, Córdoba and San Luis) was taken.
2 To calculate the year-on-year variations for 2016, INDEC’s CPI-GBA was used, spliced backwards with the CPI of the City of Buenos Aires.
Source | INDEC and Statistical Directorates of the City of Buenos Aires, San Luis and Córdoba.

 

Showing an even stronger drop in core inflation.

The disinflation process has been accentuated in recent months.

The stock of bills and passes, net of the international reserves acquired, remained stable in terms of GDP.

The disinflation process was achieved with a constant Multilateral Real Exchange Rate (MRER). This is a novelty in Argentine history

 

2. Development and deepening of the local financial system

• Citizenship Benefits
• More opportunities in access to financing for projects, safeguarding savings and a context of financial stability, all elements conducive to economic development.

A strong recovery in credit was evident

– UVAs expand access to mortgage credit for families | Press Release
– Regulation of surface rights as bank guarantees | Press Release
– Publication of statistics on the UVA market | Press Release Missing news to be uploaded- More transparency: more information in the Debtors’ Center | Press Release– The BCRA creates a new way of contact with users of financial services www.usuariosfinancieros.gob.ar | Press Release “Financial Users” Need to Be Loaded – The BCRA will relieve banks under the incognito customer modality | Press Release
– Gambling Companies Will Have Restrictions on Owning Banks | Press Release Missing to load news
Mortgage Loans -in real and seasonally adjusted terms, variation in the average monthly balance-

3. Banking, financial inclusion and means of payment

• Citizenship Benefits
• Facilitate access to and use of financial services.
• Agility, security and lower costs in payments and collections.
• Combating criminal activities and greater equity in the distribution of tax burdens.

The BCRA continued to promote new means of payment

– The cost of what banks charge for card transactions falls.

Exchange Acquiring – % per transaction –