The Central Bank of Argentina has introduced regulatory changes that permit the issuance of new mortgage loans denominated in US dollars.
The move represents a notable relaxation of capital controls, allowing domestic banks to utilize foreign currency deposits held by residents to finance internal market activities.
Under the new framework, these loans must be guaranteed by the borrowers, ensuring that the credit extension is backed by collateral.
The policy shift is designed to unlock liquidity trapped in dollar-denominated savings accounts, directing it toward the domestic economy.
By enabling banks to lend these funds to local companies and real estate developers, the central bank aims to stimulate investment in key sectors that have been constrained by tight credit conditions.
This approach seeks to balance the need for dollar inflows with the demand for financing within the domestic market.