# Looser Fed policy and monetary target hamper Argentina’s currency efforts - Central Banking

> Argentina's planned gradual peso devaluation, agreed with the IMF within a currency band, is being hampered by the central bank's monetary base target and the weaker US dollar tied to looser Federal Reserve policy. Inflation is rising faster than expected while Argentine forex reserves have reached a record high.

- Date: 2019-02-22 · published 2019-02-22T12:00:00.000Z
- Category: macro · region Argentina · magnitude low
- Page: https://feedsoft.ai/events/60884-looser-fed-policy-and-monetary-target-hamper-argentina-s-currency-efforts
- Commodities: [Argentine Peso (ARS per USD)](https://feedsoft.ai/c/USDARS.md)

## Why it matters

Slower peso depreciation reduces the competitive edge of Argentine grain and meal exports, which may support global feed prices if it persists. The effect on commodity prices is limited for now.

## Read by commodity

- USDARS: neutral

## Sources

- centralbanking.com: https://www.centralbanking.com/central-banks/reserves/foreign-exchange/4047581/looser-fed-policy-and-monetary-target-hamper-argentinas-currency-efforts

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.