Overview

• Traders report the BCRA moved its sterilization from the visible REPO desk to BYMA’s less transparent simultáneas to drain pesos and manage overnight rates.
• In a fourth hike in 40 days, reserve requirements rose again before a Treasury sale, helping secure a strong rollover while short‑term funding costs jumped.
• Analysts warn the simultáneas strategy raises quasi‑fiscal costs and sets a floor under caución rates, with sustainability questioned if reserves do not build.
• José Luis Daza said the team is comfortable with the exchange‑rate bands and ultimately targets a free float, acknowledging that high rates can briefly slow activity.
• Luis Caputo accused the opposition of fueling volatility and defended the liquidity squeeze as necessary, as scrutiny grows over his LEFI timeline versus Decree 602/2024 and country risk holds above 850 basis points; the government plans a bill to bar monetary financing and require balanced budgets.