brokewizard@bcra:~$
📈 Argentina's crawling band regime
The Central bank sets an upper and lower bound (the “band”) for the exchange rate, and the market rate is allowed to float within those bounds. The band itself is adjusted over time at a predetermined pace.
Unlike traditional crawling bands where both the floor and ceiling move in the same direction, Argentina's system is divergent:
- › Lower bound gradually moves down by -1% per month.
- › The upper bound gradually moves up by +1% per month.
- › This creates a widening band over time.