Investors Bet Argentina Crawling Peg to Speed Up to 6% by April
- Futures contracts indicate peso peg accelerating to 6% in Q2
- Positive impact of December devaluation dimmed by inflation
Argentina’s economy minister says the peg’s pace will depend on the central bank and how fast inflation decelerates.
Photographer: Anita Pouchard Serra/BloombergInvestors are betting Argentina’s central bank will accelerate the gradual depreciation of the peso, known as a crawling peg, by April in an effort to make the currency more competitive in time for the country’s crucial commodity exports.
Investors see the peg accelerating to 6% monthly by the start of the second quarter, according to peso futures data. That’s up from the 2%-per-month pace set by President Javier Milei when he took office in December and also enacted a 54% devaluation. Milei’s currency policy is a crucial pillar of his bid to rein in Argentina’s triple-digit inflation as well as the government’s $44 billion program with the International Monetary Fund.