Argentina Eases Bank Reserve Rules to Spur Liquidity Amid Milei’s Political Momentum
Argentina's central bank has relaxed reserve requirements for financial institutions, marking the first major policy shift since President Javier Milei's party secured a decisive midterm election victory. The amendment allows banks to moderate daily liquidity buffers while maintaining overall reserve ratios, a MOVE officials claim will channel credit to households and businesses without compromising financial stability.
Market sentiment turned optimistic following the announcement, which addresses months of inflationary pressure and constrained lending. Banking representatives had lobbied for the change, arguing that rigid daily reserve allocations forced inefficient capital management. Analysts view the modest easing as a calibrated effort to stimulate economic activity without reigniting inflation.
