Overview

• The FT says inflation slowed and measured poverty fell to roughly 32% from 42%, yet the adjustment left recessionary conditions and weaker purchasing power.
• A Banco Provincia estimate cited by the FT puts April–August dollar buying from the central bank at $9.5 billion that was resold in parallel markets, eroding reserves.
• Economic activity has slipped since April and real wages have not recovered since early 2023, with a stronger peso curbing imported inflation but hurting competitiveness.
• To support the currency, the central bank lifted rates above 60%, a step that has chilled investment and credit for small and mid‑size firms.
• Political setbacks, including a 13‑point Peronist win in Buenos Aires province and corruption accusations around the presidency, fueled investor concern and a fresh run; separate opinion pieces float U.S. financing support via swaps, which is not confirmed.