Argentina to Sell Dollars in Parallel Market to Shore Up Peso
- Economy chief seeks to curb increase of pesos in circulation
- Measure stands to further impede rebuilding of reserves
The Central Bank of Argentina in Buenos Aires.
Photographer: Sarah Pabst/BloombergThis article is for subscribers only.
Argentina’s central bank will sell dollars in parallel currency markets starting Monday in a bid to shore up the peso, whose unofficial exchange rate has weakened more than 30% so far this year, further fanning inflation.
President Javier Milei and Economy Minister Luis Caputo began to detail on Saturday the new strategy that seeks to contain the widening gap between Argentina’s official and parallel exchange rates. While the peso is officially sold at 919 per dollar due to currency controls, one of the key parallel rates closed Friday at 1,405 per dollar.