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Argentina's Wholesale Dollar Breaks Informal ARS 1,500 Ceiling

The wholesale close matters because it sets the peso cost of a US$2.6 billion bond payment, forcing the central bank into active market interventions.

Overview

  • The wholesale peso‑dollar rate rose on Wednesday, Aug. 26, and closed at ARS 1,514 after an intraday peak of ARS 1,515.
  • The Central Bank recorded a net buying position of US$61 million in the official market and stepped into futures trading to try to limit volatility.
  • Trading in the free‑dollar market jumped to about US$679 million, well above the month's average, signaling stronger demand for dollars.
  • Retail and parallel quotations moved with the wholesale close: Banco Nación's retail rate ended at ARS 1,535, the blue market fell to ARS 1,555, and the card/tourist rate remained above ARS 2,000.
  • The level of the wholesale close will raise the peso cost of the so‑called 'efecto fixing' for a bond payment tied to the close and may shape near‑term policy on exchange flexibility, rates and reserves.