The Central Bank tightens monetary pressure: more reserve requirements, daily controls, and sanctions to withdraw pesos and contain the dollar.

The Central Bank of the Argentine Republic (BCRA) formalized three key measures this Thursday to restrict liquidity in the economy and maintain exchange rate stability ahead of the legislative elections. With modifications to the reserve requirement policy through the end of the year, it seeks to pave the way for the extraordinary auction the Treasury will hold next Monday , after the renewal of debt in pesos was lower than expected.

The objective is clear: to absorb pesos from the market and prevent that liquidity from putting pressure on the exchange rate . The dollar has retreated in recent weeks from its highs of late July. However, this has come at a high cost in rates that, according to analysts, could affect economic activity.

The resolution raises the minimum deposit reserve requirement from 45% to 50%, allowing the five additional points to be paid only with government bonds awarded in Monday's auction . Furthermore, the calculation of reserve requirements will no longer be monthly and will instead be done daily . This reduces banks' room for maneuver and tightens liquidity controls.

Third, penalties for entities that fail to comply with the requirements have been doubled: from a fine equivalent to 1.5 times the wholesale TAMAR rate (49.75% APR) to three times that amount . This change aims to discourage any deviation from BCRA regulations, both regarding reserve requirements and foreign currency holding limits.

Financial context and key tender

The provisions are being published after a Treasury auction in which only 60% of the maturities were renewed , leaving approximately 5.7 trillion pesos out of circulation . Despite rates double the monthly inflation rate, the result forced the economic team to call a new auction. This will be held off-schedule and for Monday, August 18.

Federico Furiase , director of the Central Bank of Argentina and economic advisor, had already announced on social media the change in the reserve requirement scheme so that banks could use government bonds to account for part of the reserve requirement. Confirmation came with Communication "A 8302," which aligned monetary policy with the Treasury's financing needs.

Treasury tender announcement by Finance Secretary @pabloquirno with the offer of Treasury securities used to integrate the increase in interest-bearing reserves. https://t.co/oApwsliqLU

— Federico Furiase (@FedericoFuriase) August 14, 2025

Minutes later, Finance Secretary Pablo Quirno announced that the auction will offer bonds adjusted by the TAMAR rate maturing on November 28, exclusively for banks and for their own portfolios. The strategy aims to absorb surplus pesos and strengthen financial stability during a period of high political and exchange rate sensitivity.