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Melconian Says Argentina’s FX Regime Will Have to Change, Calls for Near-Term Monetary Signals

He argues the current band system lacks credibility, citing unclear reserve plans plus doubts over the reported US Treasury swap.

Overview

  • In new interviews, Carlos Melconian labeled the current setup an "incomplete floating" and said the government will not devalue but the exchange-rate regime itself should evolve.
  • He pressed for monetary policy announcements within about 15 days, warning that high rates and tight liquidity have stalled credit and activity.
  • Melconian urged a concrete plan to meet dollar debt obligations and a defined calendar for dollar purchases to rebuild reserves.
  • He criticized Economy Minister Luis Caputo’s past remark that he was comfortable with a 1,500-peso dollar and said official communication has not set a clear FX direction.
  • Pointing to the reported US$20 billion US Treasury support, he questioned its usability for debt service, noting Federal Reserve lawyers are still reviewing it and suggesting such funds are better suited to FX market operations.