Central Bank of Argentina


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About Central Bank of Argentina

Until 1881, the Argentine financial system was marked by the coexistence of several currencies issued by different banks in Argentina or abroad. A national gold-pegged currency was created in 1881. However, convertibility did not last long since what is known as “stop-gap currencies” (other than the national currency) continued to circulate. It was only in the early 20th century—in the aftermath of several crises mostly associated with external indebtedness—that Argentina could come back to the gold standard and build a tight link between the balance of payments and the amount of circulating money (suspended between 1914 and 1927, and eventually abandoned in December 1929).

This, coupled with the lack of a centralized authority to control currency, caused great instability in the system. The outburst of the 1890-1891 bank crisis led to the creation of institutions such as the Caja de Conversión and Banco de la Nación, which concentrated the management of instruments among other duties until 1930, subsequently assigned to the Central Bank.

In spite of these efforts, the serious monetary and financial instability could not be overcome for lack of coordination and fluctuations in the balance of payments resulting from both unstable capital movements and the country’s commodity-based economy—highly vulnerable to shifts in the world market.…..Continue reading about Central Bank of Argentina here.


Website: http://www.bcra.gob.ar/


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