Overview
- The peso will remain in a widening band that expands about 1% per month, with Milei saying the bands will be much broader within two years and ultimately become irrelevant.
- He rejected a free float despite investor pressure, arguing the framework curbs chronic volatility and will aid reserve rebuilding as money demand rises.
- Milei praised the U.S. Treasury’s October support—peso purchases and a $20 billion credit line—aligning with Scott Bessent’s view and endorsing a U.S.-led regional stance.
- He signaled a 2026 return to international capital markets, saying a U.S. swap line would cover liquidity if debt cannot be rolled over and insisting Argentina will not default.
- The government plans labor, tax and pension bills, including extraordinary sessions in December, while pursuing deeper spending cuts toward 25% of GDP and projecting 7–10% growth next year despite current stagnation.