The Argentine Central Bank is a National State self-
The Central Bank of Argentina (Spanish: Banco Central de la República Argentina, BCRA) is the central bank of Argentina
Established by six Acts of Congress enacted on May 28, 1935, the bank replaced Argentina's Currency board, which had been in operation since 1890. Its first President was Ernesto Bosch, who served in that capacity from 1935 to 1945.
The Central Bank's headquarters on San Martín Street (in the heart of Buenos Aires' old financial district, known locally as the city), was originally designed in 1872 by architects Henry Hunt and Hans Schroeder. Completed in 1876, the Italian Renaissance-
The Central Bank was a private entity during its first decade, and British Empire interests held a majority stake. Pursuant to the Roca–Runciman Treaty of 1933, Central Bank reserves accrued from Argentine trade surpluses with the United Kingdom were deposited in escrow at the Bank of England, and this clause, which had led to over US$1 billion in inaccessible reserves (more than half the total) by 1945, prompted the Central Bank's nationalization by order of Juan Perón in December.
Normally subordinate to the Economy Ministry in matters of policy, the Central Bank took a more prominent role during the Latin American debt crisis when, in April 1980, it enacted Circular 1050. This measure, enacted to shield the financial sector from the cost of receiving payments in suddenly devalued pesos, bankrupted thousands of homeowners and businesses by indexing mortgages to the value of the US dollar locally, which rose around fifteenfold by July 1982, when Central Bank President Domingo Cavallo rescinded the policy. During the years of Cavallo's Convertibility Law, which established a 1:1 fixed exchange rate between the Argentine peso and the United States dollar in March 1991, the BCRA was mainly in charge of keeping foreign currency reserves in synch with the monetary base.
Since the repeal of the Convertibility Law in January 2002, the devaluation and depreciation of the peso and the end of the economic crisis, its role has been the accumulation of reserves in order to gain a measure of control of the exchange rate. The BCRA buys dollars from the market to neutralize the large surplus of the foreign trade balance and keep the official exchange rate at the level desired by the government, currently around 3.80 pesos per dollar, considered internationally competitive for exports and useful to encourage import substitution (see Foreign trade of Argentina).