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Argentina’s FX Calms After U.S. Treasury Peso Buys and $20 Billion Swap With BCRA

Markets now expect a temporary lull in currency volatility through the Oct. 26 elections.

Overview

  • The U.S. Treasury confirmed direct purchases of pesos and a US$20 billion currency swap with Argentina’s central bank following talks in Washington.
  • After the intervention, the official dollar held at $1,400/$1,450 on Banco Nación screens, with the wholesale rate near $1,420.
  • Financial-dollar quotes consolidated with MEP at $1,440.81, CCL around $1,453.22, and the blue at $1,455/$1,475, keeping the gap with the official near 4%.
  • Economy Minister Luis Caputo ruled out dollarization and said the exchange-rate band and floating scheme will continue.
  • BCRA gross reserves were reported at US$42.056 billion, and a U.S. market holiday limited dollar-cable settlement even as local trading proceeded.