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Argentina Reaffirms Exchange-Rate Band as Markets Rally on Policy Signals

Luis Caputo set this month for a plan on reserve accumulation with debt buybacks, reinforcing the commitment to the band regime.

Overview

  • Economy Minister Luis Caputo ruled out a free float and said the band ceiling will cap any jump in the dollar, telling viewers to be calm about the exchange rate.
  • Government guidance points to a forthcoming program to build reserves and repurchase sovereign debt, with details due before month-end.
  • Market reaction stayed positive: dollar bonds extended gains, Argentine ADRs rose up to 7%, the S&P Merval hovered near 2,000 points, and country risk fell to about 599 basis points.
  • Private analysts warned that net BCRA reserves may be critically weak, with tentative estimates suggesting deep negatives after a reported U.S. Treasury swap activation.
  • Key quotes on November 11: official minorista at ARS 1,395/1,445, blue around ARS 1,405/1,425, tarjeta/ahorro near ARS 1,878.50, and the wholesale rate reported near ARS 1,411.50.