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Argentina’s Economy Chief Reaffirms Currency Bands, Outlines Reforms and Reserve Push

He spoke after election gains to counter doubts from Domingo Cavallo over the reserves backing the bands.

Overview

  • Luis Caputo said Argentina could grow up to 10% in 2026 if structural reforms hold and confidence improves.
  • He ruled out a free float for now and reiterated a managed regime with exchange-rate bands, citing high volatility.
  • The minister previewed proposals that include cutting employer contributions by three points, creating a mandatory severance fund, and eliminating taxes seen as distortive such as Ingresos Brutos, the check tax and export duties.
  • Caputo told markets the government plans to build more foreign-exchange reserves than expected, pursue swaps with China and the United States, and re-open access to external financing.
  • He said public debt was reduced by about $50 billion, while former minister Domingo Cavallo questioned whether the government has the dollars to defend the top of the bands and urged lifting remaining currency controls.