BCRA measures regarding the evolution of the economic situation and liquidity conditions

Summary:

On December 10, 2023, the economic situation presented signs of reduced uncertainty, with factors such as:

Monetary equilibrium, characterized by a declining inflation rate, monetary base reduction, and a consequent improvement in the Central Bank's balance sheet.
A significant accumulation of international reserves.
Stability in the exchange rate, with a narrowing breach between the official exchange rate and parallel market rates.

The Central Bank of Argentina (BCRA) has responded to these developments by taking measures to:

Flexibilize access to the Monetary Law Council (MLC) for micro, small, and medium-sized enterprises (MiPyMEs), allowing them to pay imports in 30 days.
Permit MiPyMEs to pay up to 20% of the value of capital goods in advance.
Reduce the policy rate, setting the passive rates at 70% TNA.
Normalize liquidity management through reserve requirements, modifying the cash reserve requirement for money market funds.
Deactivate the swap agreement with the Bank for International Settlements (BIS), canceling the facilities and rescheduling the swaps.

These measures aim to reduce uncertainty, promote confidence in the economy, and achieve growth, low inflation, and job creation.