BUENOS AIRES (Reuters) -Argentina’s main bank will start selling U.S. dollars in the nation’s parallel foreign exchange markets in an effort to fight inflation and freeze the nation’s cash supply, the federalgovernment stated on Saturday.
Economy Minister Luis Caputo revealed the brand-new method on messaging platform X on Saturday, stating it would “contribute to deepening the disinflation procedure.”
Starting Monday, when Argentina’s main bank concerns pesos to buy U.S. dollars on the official exchange market, the bank will successfully balance Argentina’s financial base by selling an comparable quantity of dollars on the parallel “CCL” exchange market, Caputo stated.
“There are no more pesos printed in Argentina by any suggests. It is a historical novelty,” Caputo lateron stated in a radio interview. “We were pounding inflation by (a coupleof) points and this is the ‘knock out’ blow,” the minister included.
The statement comes after authorities information released on Friday revealed a five-month streak of slowing inflation ended in June when regularmonthly inflation came in greater than in May.
The technique detailed by the federalgovernment of President Javier Milei intends to support the cash supply, bring down inflation and assistance close the expanding space inbetween Argentina’s authorities and parallel exchange r