Overview

• The central bank intervened for a second day after the wholesale dollar touched the band ceiling, keeping the official rate near 1,474.5 pesos.
• Total reserve sales reached $432 million over two sessions, with the band currently set between 948.76 and 1,474.83 pesos.
• Argentine assets slumped, with the S&P Merval down 4.93%, sovereign bonds off about 3.8% on average, and the country risk index above 1,400 basis points.
• The BCRA posted gross reserves of $39.407 billion, while market estimates put net reserves near $6 billion, intensifying sustainability concerns.
• Fresh political strain and corruption allegations citing Karina Milei, plus a recent electoral setback in Buenos Aires province, have stoked dollar demand alongside weak Q2 growth of −0.1% q/q.