The region is finally leaving behind the well-known original sin that features last decades (currency mismatches), providing solid grounds for developing domestic yield curve in local currency. All over Latin America, financial systems are better-matched, well capitalized and less exposed to public sector debt, another sin from the past.
Not long ago, we used to have not only central banks but also the financial system financing the treasury with no limits whatsoever. In the case of Argentina, for instance, the policy designed by the central bank aimed to this purpose led banks to reduce their government debt holdings that recently stands at 14.6% of net assets, the lowest level in many years.