Overview

• La Libertad Avanza lost the Buenos Aires legislative race by about 13 points to the Peronist alternative, undercutting the administration’s political leverage.
• Argentine assets slumped as U.S.-listed shares fell up to 24%, local bonds dropped as much as 10%, the Merval slid sharply, and risk surged above 1,000–1,100 basis points.
• The peso moved toward the exchange band’s ceiling near 1,470, with MEP and cash-with-settlement rates around 1,435–1,440, while officials signaled no immediate intervention.
• President Javier Milei and Economy Minister Luis Caputo pledged no changes to fiscal, monetary or currency policy as the Treasury faces more than $7 trillion pesos in maturities this week and markets price higher rollover risk into 2026.
• Analysts flagged options under discussion including reserve use at the band, tighter tools or renewed controls versus depreciation, as internal strains surfaced, the government met BID chief Ilan Goldfajn, and the IMF’s Julie Kozack prepared a Thursday briefing with a 50‑day pre‑election window ahead.