In a presentation at Inviu’s annual Kick Off conference in Buenos Aires, Central Bank of Argentina Deputy Governor Vladimir Werning set out how a stabilization program aims to reduce Argentina’s external vulnerability by funding private investment with higher domestic savings. The agenda described combines eliminating the fiscal deficit, adopting foreign exchange flexibility to facilitate relative price adjustments, building foreign exchange reserves consistent with monetary equilibrium, and honoring contracts alongside net debt repayment to reduce country risk. The approach also prioritises foreign direct investment as a medium-term financing source and seeks to lift private-sector savings by retaining savings on-shore and encouraging repatriation of overseas savings. To increase savings without creating external imbalances, the presentation emphasised pursuing price stability, removing financial repression to allow positive real returns for depositors, using fiscal incentives to support capital repatriation and formalization, advancing a currency competition framework to intermediate savings in both ARS and USD, and lowering costs while expanding options in capital markets and banking.
Central Bank of Argentina 2026-03-09
Central Bank of Argentina Deputy Governor outlines stabilization agenda to reduce external vulnerability by raising domestic savings
Central Bank of Argentina Deputy Governor Vladimir Werning outlined a stabilization program at Inviu’s annual conference to reduce external vulnerability by boosting domestic savings for private investment. Key measures include eliminating the fiscal deficit, adopting foreign exchange flexibility, building foreign reserves, and encouraging foreign direct investment and repatriation of overseas savings. The program aims to enhance savings through price stability, positive real returns for depositors, and fiscal incentives, while promoting a currency competition framework and expanding capital market options.