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Banxico Cuts to 7.25% as Argentina’s FX Calm Deepens on Full Debt Rollover

Light liquidity in Buenos Aires kept exchange rates steady, shifting attention to possible reserve accumulation.

Overview

  • Banco de México reduced the policy rate by 25 basis points to 7.25% in a 4–1 vote, marking a twelfth consecutive adjustment.
  • The Mexican peso edged firmer to a Banxico closing rate of 18.5647 per dollar as the US dollar index eased.
  • In Argentina, the official Banco Nación dollar held at ARS 1,475 and the blue dollar slipped to roughly ARS 1,415–1,435 during the banking holiday.
  • Argentina’s Treasury reported a 111% rollover in its latest auction, with country risk recently near nine‑month lows around 621 basis points.
  • Local stocks fell as many sovereign bonds gained, and market commentary from PPI pointed to likely Treasury dollar purchases earlier in the week, reinforcing reserve‑building expectations.