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Milei Sticks With Exchange-Rate Bands Through 2027 as Investors Push for a Float

Opaque U.S. dealings are testing investor confidence in Argentina's reserve strategy.

Overview

  • President Javier Milei told the Financial Times the currency band regime will remain in place until late 2027.
  • Pimco markets director Pramol Dhawan urged a free float and warned that foreign investors will not buy local assets at the current peso level.
  • Central bank vice president Vladimir Werning said the BCRA will purchase foreign currency only once the economy recovers and money demand increases.
  • Consultancies 1816 and Econviews detailed U.S. Treasury peso transactions and later bond sales, with markets inferring a U.S. swap may have been activated, a point not confirmed by officials.
  • Moody’s Jaime Reusche said building reserves is essential for improving Argentina’s ratings, as questions linger over the source of a recent $796 million IMF payment and the government’s capacity to accumulate reserves.