Argentina Raises Reserve Requirements in Inflation Battle
- Amount banks must keep on deposit raised by up to 2.5 ppts
- Measure aimed at soaking up excess pesos to curb inflation
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Argentina’s central bank raised reserve requirements by as much as 2.5 percentage points as it seeks soak up excess pesos and rein in inflation of about 40 percent.
The amount banks must keep on deposit at the central bank was raised 1.5 percentage from about 13 percent for time deposits and 2.5 percentage points from about 17 percent for current accounts, the central bank said in an e-mailed statement. Banks will need to make a similar increase in July, the bank said.