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Subject

The Central Bank's 2015 monetary programme.

Significance

The Central Bank's (BCRA) 2015 monetary programme indicates that the main features of the current monetary policy framework -- characterised by an expansionary bias, foreign exchange controls and close monitoring of the informal exchange market -- will continue this year.

Impacts

The government will prioritise exchange rate stability, at the expense of economic activity.

The BCRA will continue using the official exchange rate as a nominal anchor.

Foreign exchange controls may be extended to discourage devaluation expectations and to protect international reserves.

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