Overview

• The official peso-dollar rate climbed to about ARS 1,380 on August 1, its highest nominal value since lifting currency controls, while the blue market rate hit ARS 1,335.
• The IMF signed off on a $2 billion disbursement under Argentina’s extended fund facility to bolster central bank reserves.
• Banco Central de la República Argentina raised cash reserve requirements for sight deposits from 36% to 40% and imposed a 40% ratio on money-market funds.
• Private outflows of $12.3 billion for tourism and savings between April and June marked the largest quarterly capital flight in 22 years.
• Analysts warn that continued political uncertainty and potential central bank losses on futures contracts could sustain depreciation pressures, leading some investors to prefer high-yield peso instruments.