Overview

• The Treasury absorbed about 4.7 trillion pesos in off-schedule auctions, convalidating annual yields of up to 48% to pull excess liquidity from banks.
• The central bank sharply raised its one-day repo rate to 36% to withdraw surplus pesos and help stabilize the currency.
• These coordinated measures have held the peso steady near 1,260–1,300 per U.S. dollar after recent volatility.
• The government is now awaiting IMF sign-off on its first program review to unlock a US$2.2 billion disbursement tied to reserve and current-account targets.
• Analysts warn that the high cost and temporary nature of the interventions, along with expected declines in grain export dollars, could strain fiscal balances and dollar availability.