A band, not a peg: how Argentina holds its exchange rate under the IMF programme

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A band, not a peg: how Argentina holds its exchange rate under the IMF programme

Background

Argentina's currency is the peso, and the institution that issues it and sets monetary policy is the Central Bank. Under the Extended Fund Facility programme the Central Bank targets money aggregates calibrated to support disinflation and reserve accumulation, and keeps exchange rate flexibility within an exchange rate band system rather than a fixed peg. Rebuilding foreign currency reserves is a programme commitment: reserve purchases exceeded the mid-year target by US$4 billion, and annual reserve accumulation has reached US$16 billion.

Currency: Argentine peso Exchange rate regime: Exchange rate band system, with flexibility inside the band Reserve purchases above mid-year target: US$4 billion Annual reserve accumulation: US$16 billion

Why it matters for exams: The currency of Argentina and the name of its central bank are among the most frequently asked country facts, and the difference between a currency band and a fixed peg is a standard Banking question.

Kerala PSCSSCBank

28 October 2026 Source: Buenos Aires Herald

In plain words

Exchange rate band — A system in which a currency may move freely only between a stated upper and lower limit.

Monetary aggregates — Measures of the money supply that a central bank can set targets for.