Overview

• The peso has climbed close to the upper limit of the monthly-adjustable 1% float band introduced after lifting currency controls in April.
• BCRA director Federico Furiase argues that fiscal surpluses, zero monetary issuance and a recapitalized central bank prevent dollar gains from spilling into consumer prices.
• Economist Carlos Melconian warns that net reserves have remained negative since August 2022 and that ongoing market interventions mask a genuine equilibrium rate.
• Households have withdrawn roughly $10 billion in dollar deposits over the past three months, reflecting deep distrust in the peso’s stability.
• Sales of dollar futures by the government highlight reliance on central bank operations to cap the exchange rate and raise questions over the regime’s long-term durability.