Overview

• The government set an informal cap of ARS 1,300 on the official dollar to prevent further inflationary pass-through.
• The Banco Central sold over USD 600 million in dollar-futures contracts to temper exchange-rate expectations for late July and August.
• One-day REPO rates climbed from 25% to 36% nominal annual to soak up roughly 5 trillion pesos freed by the dismantling of LEFIs.
• The official dollar stabilized around ARS 1,280 for sale (ARS 1,230 for purchase) and the parallel blue rate plunged to about ARS 1,295 after its biggest daily drop in three months.
• Former Economy Minister Hernán Lacunza warned that without deeper competitiveness reforms, the artificial ceiling may prove unsustainable.