As President Donald Trump stated, the United States generated “a lot of money” through its bailout of Argentina. Despite the rally in that country’s markets following President Javier Milei’s unexpectedly significant win in the recent legislative elections, the situation appeared rather subdued. By the end of trading on Monday, it was estimated that the US … Read more
On Monday, markets exhibited a euphoric response to the mid-term election results in Argentina, as evidenced by the strengthening of the peso, bonds, and stocks. While certain analysts anticipate an increase in international investment, others contend that the government ought to pursue additional reforms to stabilize the economy. On Sunday, President Javier Milei’s La Libertad … Read more
The United States allocated a sum significantly surpassing US$1 billion this month for the acquisition of Argentine pesos, as per market estimates, coinciding with the intensification of Treasury Secretary Scott Bessent’s backstop initiative in anticipation of the midterm vote on October 26. The count is still pending verification, yet an anonymous trader estimated the amount … Read more
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
Investors in Argentina are raising their expectations that President Javier Milei will implement a devaluation of the peso following the midterm elections this month, as the government continues to exhaust its reserves to support the struggling currency. The Treasury took action for the seventh consecutive session on Wednesday. It had already sold an estimated US$1.5 … Read more
The government of Argentina engaged in the sale of dollars on the foreign exchange market on Monday for the fifth consecutive session. This action was taken in an effort to alleviate the depreciation of the peso. It is likely that the Central Bank acts as the financial middleman for the Treasury in the domestic currency … Read more
A “dollarized” Argentina is doing well and a “pesofied” Argentina is struggling. Once the enthusiasm about inflation reduction subsides, Argentines will measure the Javier Milei administration depending on where in the social food chain they land. This will be measured by a simple variable: their standards of living vis-à-vis the past and their fellow countrymen. While it … Read more
A sharp rise in borrowing costs comes as the government prepares for a peso debt auction Wednesday to roll over US$17.4 billion in maturities, or a third of the economy’s money. On Monday, yields on the Argentine government’s short-term notes reached unprecedented levels, occurring merely two days prior to an auction by the Treasury that … Read more
Following Economy Minister Luis Caputo’s call for Argentines to withdraw their dollars and “remonetise” the economy without answering questions, experts worry about legal and tax consequences. Argentina’s government is implementing new deregulatory measures that will enable individuals to utilize US dollars held outside the banking system without the need to disclose the source of these … Read more
Amid a dollar shortage, President Javier Milei’s announcement of a permanent reduction in farm export duties emphasizes the importance of facilitating hard currency flow in foreign exchange markets, potentially at the expense of fiscal accounts. The initiative seeks to encourage liquidations to mitigate exchange rate pressures in the lead-up to the midterms, thereby impacting tax … Read more