Milei Says He Would Slow Crawling Peg If Inflation Cools Further
- President signals pace of peso devaluation could slow to 1%
- IMF has asked Argentina to implement more flexible FX policy
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President Javier Milei outlined his vision for the future of Argentina’s currency policy Sunday night, saying the peso could weaken at a slower pace if inflation cools to a certain level.
Milei’s remarks weren’t an immediate policy change and he made clear he wasn’t adjusting the current 2% monthly pace of the so-called crawling peg anytime soon. However, he said the peg would slow to 1% once monthly core or wholesale inflation reaches 2%. In May, wholesale prices rose 3.5% on the month while core prices climbed 3.7%.