Argentina’s central bank changed its benchmark tool for monetary policy Monday, replacing four-week notes with one-day transactions in a bid to lower borrowing costs.
The monetary authority will no longer auction its 28-day Leliq notes, which until now were used to determine its policy rate. Instead, the 1-day repo notes that currently pay an interest rate of 100% will serve as the bank’s new policy benchmark.
Read More : Argentina Implements Unconventional Move, Slashing Key Rate to 100% through Policy Tool Swap