Overview

• Banco Central sold US$379 million on Thursday under the IMF-sanctioned band mechanism after the wholesale dollar breached the ceiling.
• Two-day reserve sales reached roughly US$432 million following a smaller intervention the previous day.
• The central bank began publishing daily band limits at 948.76 pesos for purchases and 1,474.83 for sales, keeping the interbank rate near 1,474.5.
• The government said the National Treasury will operate directly in the FX market to ensure liquidity and curb sharp peso moves.
• Market stress deepened with the S&P Merval down 4.93%, sovereign bonds off about 3.8%, and the risk premium moving above 1,400 basis points.