Buenos Aires, Argentina - July 21, 2024

The Central Bank (BCRA) will implement from Monday its new monetary policy of "zero issuance", announced by the president of the entity, Santiago Bausili, and the Minister of Economy, Luis Caputo, on June 28.

This policy will be implemented together with the issuance of Letras Fiscal de Liquidez (Lefi), Treasury debt securities. At the same time, the announcement of the change in the income tax of the Fiscal Package is expected. One of the pending measures after the approval of the rules for the moratorium, the blanqueo and Bienes Personales, aspects that do have a full impact on the citizen.

The government's strategy is to transfer the Central Bank's debt to the Treasury and thus convey the message of "zero emission". This means that the entity will not print more pesos to finance the renewal of liabilities, which amount to approximately $20 billion.

This measure requires the Treasury, without resorting to money issuance, to face the maturity of this debt on 17 July 2025. For this reason, within the financial sector, a hopeful atmosphere prevailed in the face of a presumed increase in the central bank rate.

However, president Javier Milei played down this possibility in an interview with the media Neura. Meanwhile, the monetary entity has not officially expressed itself on the matter.

SHOTLIST:
1. various printing of two thousand peso banknotes;
2. various printing of one thousand peso banknotes;
3. various thousand-peso banknotes.