The BCRA launches a new public consultation to modify the methodology used for calculating the benchmark exchange rate, currently provided for in Communication A 3500, dated March 1, 2002. The initiative seeks to enhance the accuracy, representativeness, and transparency of the benchmark exchange rate by replacing the current quotation request system with a scheme based on weighted average prices of transactions actually carried out.
In this regard, the BCRA proposes moving toward a methodology that reflects the prices actually traded, weighted by volume and submitted by institutions with the highest share in the foreign exchange market. The new scheme will allow for a more transparent exchange rate, as it will be based on actual transactions rather than declaratory values; more representative, as it will weigh the amounts actually traded by institutions with the highest market share; and more accurate, as it will incorporate automatic mechanisms for excluding outliers.
In addition, this methodology is expected to provide a more robust calculation value for determining prices in financial contracts and preparing official statistics. In turn, the automation of calculation will help to reduce operational errors and improve the traceability and auditability of published data.
The benchmark exchange rate is published daily and is used by financial institutions for the preparation and submission of accounting information, and by forward markets for contract settlements. It also serves as a benchmark for several financial instruments, such as bond issuances and corporate bonds linked to the US dollar.
A comparative analysis with central banks in the region reveals that countries such as Chile, Colombia, Peru, Guatemala, and Uruguay have already implemented methodologies based on weighted average prices. In contrast, Argentina, Brazil, and Mexico continue to rely on quotation request systems. This difference highlights an opportunity to review the current approach and move toward a more modern and objective methodology aligned with international standards.
The draft of the new methodology is available for public consultation on the BCRA’s website. It is aimed at receiving feedback from different social actors, identifying regulatory improvements and encouraging active participation in the development of new regulations. Suggestions may be submitted until November 14, 2025.
