The exchange market has calmed in the last two days following a slight and gradual appreciation of the Argentine peso against the U.S. dollar, said Luis Caputo, president of the Central Bank of Argentina (BCRA), on Friday.
During the 39th Convention of the Argentine Institute of Finance Executives (IAEF) in Argentina's western city of Mendoza, Caputo said BCRA will soon deliver a new strategy intended to relax the market.
The plan goes beyond daily auctions of U.S. dollar and forms part of the current conversations between the government and the IMF's economic team, said Caputo.
"Auctions functioned well in other countries and here until July. But in the last two weeks it was clear that in a dysfunctional market, auctions were not the best tool," he explained.
"The market understood the message and found equilibrium yesterday without Central Bank intervention," he added.
On Thursday, the dollar fell against peso, ending the day with a sale price of 38 pesos in the public market.
"The strategy has changed," said Caputo, without adding further details on how.
However, the bank president said that the peso's floating exchange rate will allow Argentina to "absorb shocks."
"Now, we're moving towards a much more normal, calmer situation, not only in the exchange market, but in the bond market," he added.
Caputo also explained that BCRA had shown a monetary and exchange program to the IMF which was "very well received."
This formed part of the conversations which began this week to request disbursement advances from the 50-billion-U.S.-dollar financial package Argentina has agreed with the Washington-based financial institution.
During the 39th Convention of the Argentine Institute of Finance Executives (IAEF) in Argentina's western city of Mendoza, Caputo said BCRA will soon deliver a new strategy intended to relax the market.
The plan goes beyond daily auctions of U.S. dollar and forms part of the current conversations between the government and the IMF's economic team, said Caputo.
"Auctions functioned well in other countries and here until July. But in the last two weeks it was clear that in a dysfunctional market, auctions were not the best tool," he explained.
"The market understood the message and found equilibrium yesterday without Central Bank intervention," he added.
On Thursday, the dollar fell against peso, ending the day with a sale price of 38 pesos in the public market.
"The strategy has changed," said Caputo, without adding further details on how.
However, the bank president said that the peso's floating exchange rate will allow Argentina to "absorb shocks."
"Now, we're moving towards a much more normal, calmer situation, not only in the exchange market, but in the bond market," he added.
Caputo also explained that BCRA had shown a monetary and exchange program to the IMF which was "very well received."
This formed part of the conversations which began this week to request disbursement advances from the 50-billion-U.S.-dollar financial package Argentina has agreed with the Washington-based financial institution.
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