The Milei government will intervene in the exchange rate to contain the rise of the dollar in Argentina.
The Treasury will intervene in the market after the peso fell by more than 2%; the decision comes on the eve of the election in Buenos Aires.
247 - The Argentine Treasury announced that it will intervene directly in the exchange market to try to contain the appreciation of the dollar against the peso. The decision was announced this Tuesday (2) and occurs amidst a scenario of political and electoral instability, a few days before the vote in the province of Buenos Aires, scheduled for Sunday (7). The information is from Metropolis.
The decision was announced by the Secretary of Finance, Pablo Quirno, in a post on X (formerly Twitter). "The National Treasury announces that, starting today, it will participate in the free exchange market to contribute to its liquidity and normal functioning," wrote the official.
Pressure on the weight and falling titles.
The announcement came after a start to the week marked by strong volatility. On Monday (1st), with the American markets closed for a holiday, trading volume was low and the Argentine peso fell more than 2% against the dollar, compared to the previous week's closing.
In the debt market, sovereign bonds maturing in 2035 plummeted to 62 cents on the dollar, the lowest level since April, according to Bloomberg data.
Political crisis and electoral impact
Before resorting to the Treasury, President Javier Milei's government had called on the Central Bank to conduct extraordinary foreign exchange auctions and increase bank reserve requirements, but the measures had no effect. The exchange rate pressure intensified amidst corruption allegations against the Secretary-General of the Presidency, Karina Milei, the president's sister.
The political tension became evident last Sunday when the government-backed candidate finished fourth in the local elections in Corrientes. Now, the contest in Buenos Aires, a province that accounts for about 40% of Argentina's population, is seen as a crucial test for governability and as a preview of the national election in October, when there will be a partial renewal of Congress.
