Monthly Monetary Report

Executive summary

In May, traditional means of payment (private transactional M2) expanded at constant prices and without seasonality, after six consecutive months of declines. On the other hand, fixed-term deposits contracted in the month, given the lower holdings of individuals and companies (excluding Financial Services Providers). Thus, the private M3 remained unchanged.

The Monetary Base contracted 2.8% s.e. in real terms, accumulating a fall of 8.6% in the year. In nominal terms, the comparison of month-end balances registered a very slight negative variation. As has been happening, the only factor of expansion was the purchase of foreign currency by the Central Bank in the foreign exchange market, which reached USD 2,601 million in the fifth month of the year and in the accumulated so far this year exceeded USD 10,000 million at the beginning of June. This expansionary effect was partially sterilized by the BCRA through market operations and repos. The operations of the National Treasury also had a contractionary effect.

The BCRA released the accounting results for fiscal year 2025, which recorded a profit of $ 34.3 billion.

In this context, the Board of Directors ordered the constitution of reserves for $ 11.4 billion and the transfer to the National Treasury of $ 24.4 billion in dividends. This distribution did not imply monetary expansion, since the resources were allocated to the repurchase of Non-Transferable Bills held by the BCRA for $18.4 trillion (USD 21,000 million) and to the constitution of Treasury deposits in the entity for $6 trillion.

Finally, credit in pesos to the private sector registered a slight contraction in May, explained by the behavior of consumer loans and those with real collateral, while commercial loans expanded 1.1% at constant prices and without seasonality.