© Reuters. FILE PHOTO: The facade of Argentina’s Central Financial institution is pictured within the monetary district of Buenos Aires, Argentina December 7, 2021. REUTERS/Agustin Marcarian/File Picture
BUENOS AIRES (Reuters) – Argentina’s central financial institution on Monday mentioned it will change its benchmark rate of interest to the in a single day reverse repo price of 100% from the earlier 28-day Leliq price at 133%, a transfer aimed toward simplifying financial coverage amid an financial disaster.
“Starting from tomorrow, the bank’s monetary policy interest rate will become the rate for one-day reverse repos, a rate that since Dec. 13 has been established at 100%,” the financial institution mentioned in a press release.
The transfer comes days after libertarian President Javier Milei took workplace, as South America’s No. 2 economic system battles inflation nearing 200%.
Economist Santiago Bausili took over the presidency of the central financial institution, which Milei has pledged to finally shut down.
The financial institution added that it thought of it “prudent” to keep up a minimal 110% rate of interest for fixed-term deposits.
When it comes to liquidity injections, the financial institution mentioned it will proceed to hold out sure operations on Treasury devices which the financial institution considers acceptable.
