Overview

• The Treasury exchanged short-dated peso instruments (T17O5 and S31O5) with the BCRA for a basket of dollar‑linked bonds maturing between November 2025 and June 2026, restoring roughly US$7.2–7.3 billion of intervention capacity.
• Markets repriced on the news as dollar futures fell about 2%, implied rates dropped from roughly 60% to 35%, dollar‑linked paper turned negative near 1.5%, and the official rate steadied near ARS 1,424.50, about 4% below the band ceiling.
• The swap followed rapid BCRA secondary sales that depleted prior stock (about US$1.7 billion of D31O5 in three sessions) amid surging demand for coverage, with daily Lelink trading spiking above US$1 billion and the Treasury capturing only about US$2.2 billion of roughly US$5.8–6.3 billion in agro inflows.
• Officials are using dollar‑linked bond sales to absorb pesos and provide FX protection as an alternative to larger futures intervention, which is constrained under the IMF framework.
• The operation eases immediate peso rollover stress but shifts obligations into the medium term, and market indicators such as the CER curve still signal elevated post‑election FX volatility, with Caputo’s U.S. trip reported to have offered a brief respite.