Argentina will adjust exchange rate bands in line with inflation

Argentina announced that starting in January it will adjust its exchange-rate bands monthly in line with inflation, moving away from the semi-floating regime introduced in April.

The previous system implemented under President Javier Milei’s government, eased access to foreign currency. Under the new framework, the ceiling and floor of the exchange-rate band will change each month according to the latest inflation data reported by the National Institute of Statistics and Censuses.

Authorities said the measure aims to provide greater flexibility and reduce uncertainty in the currency market. The adjustment system will be coordinated with the International Monetary Fund, reflecting ongoing collaboration between Argentina’s central bank and the Fund.