Overview
- Pramol Dhawan of Pimco publicly urged a full free float of the peso, calling the current bands regime a barrier to stabilizing Argentina’s cycle.
- Pimco said the peso is overvalued and warned it will not buy local assets at today’s exchange rate.
- Dhawan cautioned that IMF resources, swap lines and public‑private partnerships would not provide enough dollars to prevent rapid dollarization without a currency adjustment.
- President Javier Milei has reiterated the bands will stay through 2027, and Pimco’s remarks landed just before his investor meetings in New York.
- Post‑election risk premia fell as bonds and stocks rose and the dollar traded near the band ceiling, enabling corporate dollar issuance by firms including YPF and Tecpetrol.