Overview

• Argentine stocks and sovereign bonds sank sharply and the country risk index topped 1,000 as the peso climbed toward the band ceiling near 1,460–1,470 per dollar.
• President Javier Milei and Economy Minister Luis Caputo said there will be no changes to fiscal, monetary or exchange-rate policy, reiterating the year-end primary surplus goal near 1.6% of GDP.
• Caputo met with Milei and Inter-American Development Bank chief Ilan Goldfajn to discuss reforms and financing, with no announcements after the talks.
• Analysts debated whether to defend the band with scarce reserves, lift the ceiling or reimpose capital controls, noting recent Treasury dollar sales and limited liquid buffers cited by banks such as J.P. Morgan.
• Near-term tests include a midweek Treasury auction to roll about 7 trillion pesos and potential signals from the IMF on Thursday as the peso threatens the upper limit of the bands.