February 28, 2019 / 11:29 PM / 5 months ago

Argentina adjusts forex intervention guidelines to combat inflation

BUENOS AIRES (Reuters) - Argentina’s central bank said on Thursday it had changed its foreign exchange intervention guidelines to allow it more flexibility in combating the high inflation blighting the country.

The bank raised to $150 million from $75 million the limit of daily sales that can be made after the dollar exceeds the upper limit of its stipulated price band.

When the dollar falls below the lower limit of the band, which is modified regularly, the bids may not exceed $50 million per day, from the previous maximum of $75 million.

The dollar closed at 39.18 pesos on Thursday, when the bank’s non-intervention band was between 38.617 and 49.975 pesos per dollar.

An abrupt depreciation of the peso last year has sparked a financial crisis in Argentina, exacerbated by a prolonged recession and high inflation.

Reporting by Nicolas Misculin; writing by Aislinn Laing; Editing by Rosalba O'Brien

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