Institutional Vision
Since the launch of Phase 4 of the stabilization program and with the aim of strengthening the transparency and communication of the monetary scheme, the Central Bank of the Argentine Republic (BCRA) resumes the quarterly publication of its Monetary Policy Report (IPOM). The publication, which begins with the volume corresponding to the last quarter of 2025, adopts the usual practice of the main central banks in terms of communication.
Through the IPOM, the BCRA shares its diagnosis of the national and international macroeconomic situation, presents its assessment of the future prospects, and systematically explains the monetary policy decisions adopted in order to meet its price stability objective. The report is structured into chapters dedicated to the macroeconomic context, price developments and the actions of monetary policy, complemented by thematic boxes and technical sections that deepen the quantitative analysis of specific topics. This approach facilitates a better understanding of the relationship between monetary policy, private sector expectation formation, and overall macroeconomic balance.
Unlike other stabilization experiences, the current program made it possible to make sustained progress in correcting the main inherited macroeconomic imbalances, complying with pre-existing contracts. The establishment of fiscal balance, the elimination of monetary financing to the Treasury, the correction of distortions in relative prices and the consolidation of the Central Bank’s balance sheet contributed to reducing inflation and allowed the exchange market to be freed. The consistency of the fiscal, monetary, and exchange rate policies adopted allowed the economy to converge to its short-term equilibrium, while the prospect of structural reforms reinforces expectations regarding its long-term sustainability. In this regard, the BCRA will continue to make progress on the regulations that facilitate the efficient and prudent development of the currency competition regime.
The BCRA has adopted a regime of control of monetary aggregates as an anchor of the nominal evolution of the economy. This decision is consistent with similar successful stabilization experiences for developing economies. It also takes into account the particularities of an economy characterized by a post-crisis and highly dollarized transition, in which the transmission mechanisms of the interest rate, the exchange rate, and the quantity of money differ from those observable in steady-state economies. Under this framework, monetary policy will seek to ensure that the supply of money closely accompanies the recovery of the real demand for money.
The BCRA considers that the conditions are in place to prioritize the supply of the demand for money through the purchase of foreign currency during 2026, facilitating the objective of accumulating international reserves. This diagnosis reflects a significant reduction in conflicts and trade offs that may arise between economic objectives, implying an important contrast with the adverse conditions that prevailed in the 2024 and 2025 situation. That said, in the face of permanently changing global and domestic conditions, the multiplicity of economic policy objectives never ceases to present a challenge for the management of monetary policy. Following the mandate of its charter, the BCRA’s board of directors will ensure that price stability is preserved, using all the monetary policy tools at its disposal.
