Central Bank of Argentina: Difference between revisions
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'''Banco Central de la República Argentina''' ('''BCRA''') is the [[central bank]] of [[Argentina]]. |
[[Image:Banco-central-arg.JPG|thumb|250px|[[Banco Central de la República Argentina]], in Buenos Aires city.]]'''Banco Central de la República Argentina''' ('''BCRA''') is the [[central bank]] of [[Argentina]]. |
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Founded in by six Acts of [[Argentine Congress|Congress]] enacted on [[28 May]] [[1935]], the bank replaced Argentina's [[Currency Board]], which had been in operation since 1899. [http://www.bcra.gov.ar/index_i.htm] Its current [[Governor]] is Dr. [[Martin Redrado]]. |
Founded in by six Acts of [[Argentine Congress|Congress]] enacted on [[28 May]] [[1935]], the bank replaced Argentina's [[Currency Board]], which had been in operation since 1899. [http://www.bcra.gov.ar/index_i.htm] Its current [[Governor]] is Dr. [[Martin Redrado]]. |
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Revision as of 18:16, 30 August 2006
Banco Central de la República Argentina (BCRA) is the central bank of Argentina.
Founded in by six Acts of Congress enacted on 28 May 1935, the bank replaced Argentina's Currency Board, which had been in operation since 1899. [1] Its current Governor is Dr. Martin Redrado.
During the years of the Convertibility Law, which established a 1:1 fixed exchange rate between the Argentine peso and the United States dollar, the BCRA was mainly in charge of keeping foreign currency reserves in synch with the money base.
Since the repeal of the Convertibility Law, the devaluation of the peso and the end of the economic crisis, its role has been the accumulation of reserves in order to gain a measure of control of the exchange rate. The BCRA buys dollars from the market to neutralize the large surplus of the foreign trade balance and keep the exchange rate at the level desired by the government, between 3.0 and 3.1 pesos per dollar, considered internationally competitive for exports and useful to encourage import substitution.
Near the end of 2005, President Néstor Kirchner vowed to pay the Argentine public debt with the International Monetary Fund in a single, anticipated disbursement. The payment was effected on 3 January 2006, employing about 9,500 million USD from the BCRA's reserves. This decreased the amount of reserves by one third, but did not have harmful side effects save a slight increase in the dollar-peso exchange rate.
The BCRA continues to intervene in the exchange market, usually buying dollars, though occasionally selling small amounts (for example, reacting to rumours of a possible increase of the Federal Reserve's reference rate, which caused a minor spike in the dollar's value). Its reserves reached more than 25,000 million USD in June 2006, and the official plan includes raising them to at least 30,000 million by the end of the year. [2]
See also
External link
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