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Pimco Urges Argentina to Free-Float the Peso, Says It Won’t Buy at Current Rate

The bond manager says peso mispricing is shutting out foreign money.

Overview

  • Pramol Dhawan told reporters that Argentina should allow a full float to break the boom‑bust cycle.
  • He said Pimco and other foreign investors will not purchase local assets at today’s exchange‑rate levels.
  • Dhawan argued a US$20 billion swap, IMF resources or PPPs would not stop rapid dollarization if the peso remains mispriced.
  • President Javier Milei has reiterated he plans to keep the managed band system in place through 2027.
  • Pimco’s stance follows large losses on prior peso bets in 2018–2019 and the closure of its emerging‑markets currency fund around 2020.