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Argentina Reaffirms Currency Band as Markets Rally, Provinces Seek Funds and Courts Act

Investor optimism followed the pledge to keep the currency band despite warnings that net reserves remain deeply negative.

Overview

  • Luis Caputo said the dollar will stay within the managed band and urged the public to “sleep easy,” framing the bands as a gradual float.
  • Risk premium fell near 600 points as dollar bonds and ADRs advanced and local dollar quotes eased following the minister’s reassurances.
  • Analysts estimate net international reserves around negative US$12 billion, tied in reports to the accounting of a U.S. Treasury swap.
  • The government is preparing December extraordinary sessions to push the 2026 Budget and labor, tax and penal reforms, consolidating votes under congressional leaders Martín Menem and Patricia Bullrich.
  • Buenos Aires province formally requested a meeting with Interior Minister Diego Santilli to restore transfers and restart halted works, while courts ordered Julio De Vido to present for detention and investigators raided a Rosario federal judge’s office in an abuse-of-authority probe; Cuba also opened the trial of ex-economy minister Alejandro Gil on espionage and corruption charges.