The years President Javier Milei dedicated to cultivating a relationship with Donald Trump are yielding dividends at a pivotal juncture as he confronts Argentina’s most recent currency crisis. When investors lose confidence and the Central Bank expends reserves to avert a peso devaluation, as occurred this week, the outcomes are seldom favorable. As Milei endeavors … Read more
Argentina’s Treasury is poised to acquire substantial quantities of foreign currency through block trades, coinciding with the influx of US$7 billion from grain exports into the market. Officials from the central bank have reached out to the trading desks of prominent financial institutions on behalf of the Treasury, seeking to be informed whenever a client … Read more
Banks in Argentina have once again reduced interest rates on fixed-term deposits, with some now offering rates below 40% annually. Analysts identified a US Treasury bailout and a tax holiday for grain exporters as the primary factors contributing to the reduction. Financial institutions operating in the country aligned with the Central Bank’s actions when, on … Read more
Argentina’s Central Bank has reduced its one-day peso repo rate by 10 percentage points to 25 percent, thereby halting this week’s recovery in the currency. The new rate was communicated, the primary electronic trading system of the country, according to sources. The one-day repo rate has emerged as a pivotal instrument in the Central Bank’s … Read more
The agricultural sector attained a significant export milestone of 11.47 million tons of grains, oilseeds, and byproducts, which is equivalent to US$4.181 billion in value, in the aftermath of Treasury Secretary Scott Bessent’s statement that the United States is “prepared to do whatever it takes to support Argentina.” Until either exports achieve a value of … Read more
US Senator Elizabeth Warren of Massachusetts has reached out to Treasury Secretary Scott Bessent to request additional details regarding the Trump administration’s possible “bailout” of Argentina’s economy. “It is deeply troubling that the President intends to use significant emergency funds to inflate the value of a foreign government’s currency and bolster its financial markets,” stated … Read more
One of the significant challenges facing President Javier Milei in his efforts to address a currency crisis is the prevailing consensus that the peso is overvalued. Barclays Plc asserts that the real effective exchange rate ought to be approximately 30 percent weaker to invigorate economic activity. According to reports, the peso is currently overvalued by … Read more
Banks still dominate the financial system, but more people are starting to look elsewhere. As fees climb and access remains uneven, a growing number of consumers are shifting their attention to crypto. What started as a niche asset class is now showing up in everyday transactions, side gigs, travel, and even entertainment. Everyday Crypto Transactions … Read more
Economic activity in Argentina is starting to indicate that a recession is imminent, with a probability of 98.6 percent. A report reveals a significant increase of 41 percentage points relative to July, during which the recession expectation stood at 56.1 percent. The UTDT centre report indicates that in August, its advanced indicator of economic activity … Read more
US Treasury Secretary Scott Bessent pledged to provide “all options for stabilisation” to President Javier Milei as he endeavors to prevent Argentina from reverting to crisis, which has led to a rally in the nation’s assets. Bessent and US President Donald Trump are scheduled to engage in discussions with Milei in New York on Tuesday. … Read more