Following a two-year focus on maintaining “a cheap dollar” as a means to demonstrate declining inflation rates, President Javier Milei’s administration has capitulated to demands from Washington to bolster Argentina’s international reserves. The announcement of an update to the peso’s exchange-rate trading bands, indexing them to inflation starting in January, reflects a pragmatic shift: Milei’s … Read more
Each morning at Argentina’s Central Bank, the traders on the foreign exchange desk embark on a straightforward objective: to prevent the peso from fluctuating excessively in either direction. Recently, the peso has demonstrated relative stability, weakening by less than one percent in November, marking its smallest monthly fluctuation of the year, despite being the weakest … Read more
Argentina has relaxed its currency trading restrictions and announced plans to rebuild foreign reserves, capitalizing on the increasing investor confidence in President Javier Milei’s administration to stabilize its precarious financial situation. Starting in 2026, the trading bands for the peso will adjust in accordance with the monthly inflation rate, rather than the existing one percent … Read more
The Central Bank announced on Monday that Argentina will modify its currency exchange bands in alignment with the inflation rate beginning in 2026. The monetary authority is set to initiate the accumulation of international reserves, a move it had previously hesitated to undertake due to concerns about potential inflationary pressures. “We entered a phase in … Read more
Despite a chorus of calls from investors, President Javier Milei and his advisers exhibit caution regarding the swift accumulation of Argentina’s international reserves, the decision to allow the peso to float, and the relaxation of currency controls. The government’s decisive triumph in the recent mid-term elections has provided Milei with a significant opportunity to implement … Read more
Prices in Argentina increased as anticipated last month, coinciding with the midterm election challenges faced by President Javier Milei’s party. In October, consumer prices experienced an increase of 2.3 percent, aligning with the median forecast of economists survey, and representing an uptick from the 2.1 percent recorded in September. According to government data published Wednesday, … Read more
Argentine Economy Minister Luis Caputo defended the implementation of a currency band scheme for the peso-dollar exchange rate, arguing against a free-floating system by characterizing the Peronist opposition as “communism.” The government is considering a labor reform designed to ease the process of layoffs; however, modifications to the tax system will be postponed. “We cannot … Read more
US Treasury Secretary Scott Bessent confirmed on Tuesday that Argentina had initiated the currency swap. The announcement concluded a period of speculation, with economists suggesting that the event had already transpired, despite the absence of confirmation from local authorities. Argentine President Javier Milei’s administration has not issued any public statements concerning the activation — as … Read more
This week’s Central Bank data reveals that the United States Treasury has divested the pesos acquired prior to the mid-term elections, realizing a substantial profit, according to Argentine economists. If accurate, this would bolster the U.S. government’s position that it is not providing gratuitous financial assistance to Argentina. Nonetheless, it has raised concerns in both … Read more
Argentina’s Central Bank has reduced its one-day peso repo rate by 300 basis points to 22 percent, as per reports, in the context of market stabilization following President Javier Milei’s midterm election victory. Traders were informed of the new rate on Wednesday via the BYMA, the principal stock exchange in the country, according to sources. … Read more