Of that, 10 percentage points would correspond to recovering Central Bank interest-bearing liabilities (LELIQ and repo operations). On the contrary, the Central Bank uses these interest-bearing liabilities to regulate the monetary volume and short-term reference rates. Since the day after the runoff, Milei has been making comments about solving the problem of the central bank’s interest-bearing liabilities as soon as possible to enable the elimination of currency controls. However, of all the Argentine economy’s problems, interest-bearing liabilities are by no means the most important. If progress is made in that direction, the stock of interest-bearing liabilities will be reduced, thus making exchange rate unification possible.

Source: Bueno Aires Herald November 25, 2023 11:18 UTC