The following charts visualize the relationship between the TCRM index, the wholesale exchange rate, and the monthly inflation rate in Argentina.
› By analyzing these data streams, we aim to uncover potential correlations affecting the country's financial landscape.
While a high ITCRM is positive for the competitiveness of companies and the trade balance, it also implies a high value under the current exchange rate band system. In practice, this places the wholesale dollar very close to the upper bound——an uncomfortable zone for the Central Bank. Such conditions can generate both inflationary and devaluation pressures.
For more information, see Exchange Rate Band System Monitor.