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Milei Rules Out Free Float, Keeps Peso in Widening Bands Through 2027

The plan aims to curb volatility with U.S. support bolstering reserves.

Overview

  • He said the exchange-rate bands will widen by about 1% each month and are designed to become irrelevant over time.
  • He rejected calls from investors and some banks to liberalize the peso despite improved market sentiment after the midterm win.
  • He defended the October U.S. Treasury action that bought pesos and outlined roughly $20 billion in financing, calling it a timely business decision.
  • He targets a 2026 return to global markets and says a U.S. swap or line would cover liquidity to avoid default, with negotiations on a $20 billion private-bank facility continuing.
  • He will push labor, tax and pension reforms and deeper spending cuts toward 25% of GDP, a program that will require alliances in a Congress where he lacks a majority.