Head branch of the Banco de la Nación Argentina, the retail state-owned national bank of Argentina, in Buenos Aires city. Often, its policies complement those of the BCRA; for example, regarding foreign exchange, and government initiatives affecting the banking offers to individuals, small or medium sized companies, and farmers.

The Central Bank of Argentina (Spanish: Banco Central de la República Argentina, BCRA) is the central bank of Argentina.^[1] Main building of the Banco de la Nación in front of the Plaza de Mayo Banco de la Nación Argentina (English: Bank of the Argentine Nation) is a state-owned bank in Argentina, and the largest in the countrys banking sector. ...

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. Its current president is Martín Redrado. The Congress of the Argentine Nation (Spanish: Congreso de la Nación Argentina) is the legislative branch of the government of Argentina. ... May 28 is the 148th day of the year in the Gregorian calendar (149th in leap years). ... 1935 (MCMXXXV) was a common year starting on Tuesday (link will display full calendar). ...

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. A fixed exchange rate, sometimes (less commonly) called a pegged exchange rate, is a type of exchange rate regime wherein a currencys value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold. ... The Argentine peso (originally established as the nuevo peso argentino or peso convertible) is the currency of Argentina. ... ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, Cambodia, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos Islands, and the insular areas of the United States Inflation 2. ... A reserve currency (or anchor currency) is a currency which is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. ... The money base, or the monetary base is a government liability, currency and bank reserves. ...

Since the repeal of the Convertibility Law, the devaluation and depreciation 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, currently around 3.1 pesos per dollar, considered internationally competitive for exports and useful to encourage import substitution (see Foreign trade of Argentina). Devaluation is a reduction in the value of a currency with respect to other monetary units. ... Currency depreciation is the loss of value of a countrys currency with respect to one or more foreign reference currencies, typically in a floating exchange rate system. ... The Argentine economic crisis was part of the situation that affected Argentinas economy during the late 1990s and early 2000s. ... The balance of trade encompasses the activity of exports and imports, like the work of this cargo ship going through the Panama Canal. ... Import substitution industrialization (also called ISI) is a trade and economic policy based on the premise that a developing country should attempt to substitute products which it imports, mostly finished goods, with locally produced substitutes. ... This article is about the foreign trade of Argentina. ...

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. Current President Néstor Kirchner The President of Argentina (full title: President of the Argentine Nation, Spanish: Presidente de la Nación Argentina) is the head of state of Argentina. ...  , full name Néstor Carlos Kirchner Ostoic (born 25 February 1950), is the President of Argentina, sworn in on May 25, 2003. ... Washington, D.C. Headquarters and logo of the International Monetary Fund The International Monetary Fund (IMF) is an international organization that oversees the global financial system by observing exchange rates and balance of payments, as well as offering financial and technical assistance when requested. ... January 3 is the 3rd day of the year in the Gregorian calendar. ... For the Manfred Mann album, see 2006 (album). ...

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 28,000 million USD in September 2006, recovering the levels prior to the IMF payment, and rose to 32,000 million at the closing of the year. The exchange rate experienced a gradual increase prompted by the BCRA's market intervention as a buyer, reaching 3.12 pesos per dollar, and then decreased slightly again. ^{[2] [3]} The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. ...

In its October 2006 issue, the influential Global Finance magazine gave Martín Redrado, head of the Central Bank, a D grade in its survey of global central bankers. The magazine holds that Redrado "missed the opportunity to act to curb inflation when the economy was expanding at its fastest ... with inflation expected to reach 12% in 2006, up from 7.7% in 2005 and 4.4% in 2004." Inflation for 2006 eventually amounted to 9.8%, helped by price controls, though the public's perception of it was higher due to the composition of the sample used to measure it.^[4] The BCRA obtained exceptionally high returns on investment funded by its reserves, for a total of 1.4 billion USD (a yearly rate of 5.7%) in 2006.^[5]

See also

• Argentine peso
• Economy of Argentina

The Argentine peso (originally established as the nuevo peso argentino or peso convertible) is the currency of Argentina. ... Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. ...

References