O Central Bank of Argentina sold US$45.5 million of its reserves this Tuesday (21) to support the exchange rateafter the peso reaches the upper limit of the central bank’s floating band.
The intervention came at a time when market uncertainty ahead of Sunday’s legislative elections has driven a shift to dollar assets.
The Libertarian Party Javier Miley seeks to win more seats in Congress,
The Central Bank has kept the peso in a controlled band since April, intervening occasionally to keep the exchange rate within that band, which on Tuesday was at 938,33 e 1,491.07 pesos per dollar for purchase and sale, respectively.
After the movement this Tuesday, the international reserves of the Central Bank were in US$40.539 billion.
Recent signs of political weakness have put President Javier Milei’s government under pressure, forcing it to seek to guarantee payment of the next due date of the public debt.
Pre-election currency tensions caused the wholesale peso to close down 0.7% at 1,490.5 per dollar ARS=RASL, after reaching historic lows and reaching the top of the floating band.
