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Caputo Rejects Devaluation, Says 2027 FX Turbulence Is Unlikely While Preparing Buffers

The economy minister tied market confidence to the 2027 vote and will press for foreign investment in Argentina Week in Paris to shore up reserves.

Overview

  • Luis Caputo, who spoke Tuesday, said the government does not expect major exchange‑rate volatility in 2027 but is preparing contingency tools in case pressure appears.
  • He listed official buffers and instruments that officials say can absorb shocks, including reserve purchases, currency swaps, RIGI inflows and a central bank purchase capacity officials estimated up to about US$30 billion.
  • Caputo forcefully rejected calls for a devaluation, calling proponents “momias” who would produce lower real wages, and said productivity should come from lower taxes and fewer regulations.
  • He used sharp political language against Axel Kicillof and kirchnerismo and argued that investor fear of a Peronist return is the main driver of recent market moves, linking market calm to the government’s electoral prospects.
  • The remarks came ahead of a planned Paris trip with President Javier Milei for Argentina Week, where the administration will seek foreign capital and publicize its reform agenda to reinforce investor confidence.