Blue Dollar Updates

Milei Caught Between US Pressure and China Ties

Despite Argentina’s assertions to the contrary, the bailout from the United States government seems to be contingent upon certain conditions: they are seeking to eliminate China’s presence in Argentina. However, given Argentina’s substantial annual exports to China and the potential for significant infrastructure projects, one must consider whether President Javier Milei would genuinely sever these … Read more

Trump administration supports Milei government.

Milei benefits from new US funding for Argentina, but Trump threat angers

The administration of US President Donald Trump has expressed its backing for Argentina’s President Javier Milei, aiming to enhance his prospects in the upcoming midterm elections – the onus now rests on him to secure victory. Milei, 54, is approaching the final stretch of the campaign trail, buoyed by favorable winds from Washington, even as … Read more

Argentina’s gold reserves are hidden by the Central Bank

On September 2, 2024, the Argentine Central Bank sought to dispel ongoing speculation regarding the potential export of the nation’s gold reserves by declaring that it had effectively executed “transfers of part of its gold reserves to its various accounts.” In the concluding segment, the organization indicated that the national audit office possessed the necessary … Read more

Blue Dollar Updates

Caputo Unveils Business-Friendly Labor and Tax Reforms

Economy Minister Luis Caputo announced that the government is undertaking labor and tax reforms, alongside benefits designed to encourage businesses to conserve their resources in pesos. While lacking specific details or a timeline for implementation, he indicated that these actions will constitute the “second stage” of President Javier Milei’s administration. “We clearly need a more … Read more

Scott Bessent

Argentine Peso Continues to Plummet Despite New U.S. Treasury Efforts

The U.S. government acquired pesos in the Argentine foreign exchange market, as announced by Treasury Secretary Scott Bessent on Friday; however, this intervention did not suffice to prevent the peso from depreciating against the dollar. On the same day, the International Monetary Fund emphasized that Argentina ought to enhance its reserve accumulation efforts. “Yesterday, Treasury … Read more

Blue Dollar Updates

OpenAI signs ‘intent’ but holds back funds for Patagonia AI data center

OpenAI, a prominent US technology firm and the developer of ChatGPT, has entered into a letter of intent to establish a substantial artificial intelligence data center in the Patagonia region of Argentina – marking a significant first for Latin America. The Stargate Argentina project, revealed by the Argentine government on October 10, entails a collaboration … Read more

Citi offloads Argentine pesos to the Fed amid a US Treasury rescue plan

Citigroup Inc sold Argentine pesos to the Federal Reserve on Thursday as part of US Treasury Secretary Scott Bessent’s extensive initiative to support the currency and the administration of Javier Milei, according to sources. The Federal Reserve functioned as a fiscal intermediary for the Treasury, according to the sources. Bessent’s Treasury is acquiring the troubled … Read more

Santiago Bausili

Authorities suggest US$20bn currency exchange is possible before midterms

President Javier Milei’s senior economic officials indicated on Wednesday their expectation that Argentina’s US$20-billion currency swap with the United States will be concluded within a fortnight. During an event in Washington, Economy Minister Luis Caputo and Central Bank Governor Santiago Bausili expressed optimism regarding Argentina’s economic prospects, emphasizing the robust support the country has garnered … Read more

Blue Dollar Updates

Argentine markets are volatile after Trump and Bessent’s remarks

Argentine markets are exhibiting volatility in response to the U.S. bailout announcement, with each headline eliciting both positive and negative reactions. On Tuesday, President Javier Milei engaged in discussions with his U.S. counterpart, Donald Trump, at the White House. In a working lunch attended by journalists, Trump stated that his administration would extend financial support … Read more

Argentina Inflation Rises Again, Up 2.2% in September

As a result of the 2.1 percent increase in consumer prices that occurred in September, inflation continued its upward trend over the previous month. According to the data, prices have increased by 22 percent in the first nine months of the year and by 31.8 percent over the last twelve months. This represents a considerable … Read more