The Central Bank of the Argentine Republic’s Vice President, Vladimir Werning, delivered a presentation on the evolution of Argentina’s monetary aggregates regime, setting out a phased path from monetary stabilization in 2024 and a regime transition in 2025 to demand-driven remonetisation from 2026 onwards, framed as leading to reserve accumulation. The presentation described the 2024 phase as adopting a monetary target to exit a high-inflation regime marked by fiscal dominance and a “monetary overhang”. For 2025, it outlined adapting monetary targets to move away from financial repression, including foreign exchange controls, while managing short-term transition costs and “binary risks” linked to elections. It also argued that a nominal anchor based on money quantity requires flexibility in exchange rates and interest rates, and noted that an extraordinary but temporary election shock depressed money demand. From 2026 onwards, the focus was described as managing the monetary objective to accommodate a genuine recovery in money demand alongside reserve accumulation. The presentation was delivered in English, with a Spanish version to be made available shortly; the English version is available for download.
Central Bank of Argentina 2025-10-29
Central Bank of the Argentine Republic vice president presents roadmap from monetary stabilization to demand-led remonetisation and reserve accumulation
Argentina's Central Bank VP, Vladimir Werning, detailed a phased transition in the monetary aggregates regime from stabilization in 2024 to demand-driven remonetisation by 2026. The plan includes adopting monetary targets to exit high inflation, adapting targets to reduce financial repression, and managing election-related risks. The strategy emphasizes flexibility in exchange and interest rates to support reserve accumulation and recovery in money demand.