Turbulence in the Argentine markets continued on Thursday as the Central Bank sold US$379 million to stabilize the wholesale exchange rate at AR$1,474.5. Bonds and shares saw falls of over 10%, while the parallel rates soared.
On Wednesday, the monetary authority had to deplete US$53 million to prop up the peso after the dollar first breached the currency band’s ceiling. It was the second time they intervened in the exchange rate since April 11, when it moved from a crawling peg — daily microdevaluations — to a banded exchange rate scheme.
Milei is enduring his worst stretch since coming into office. Over the last month, the government has faced corruption allegations, a congressional defeat, and a lost election. This week’s market volatility comes on the heels of more legislative setbacks, as the lower house voted to overturn two presidential vetoes, while the Senate voted to reject another one.
