Market News
Investors push Argentina for flexible peso amid reserve, FDI concerns
By Rodrigo Campos and Laura Matthews
Summary
- Investors urge Argentina to adjust FX regime for reserve buildup
- Futures curve implies breach of weak end of trading peso band
- Analysts see U.S. support as temporary, structural change needed
NEW YORK, Nov 14 (Reuters) - Investors are urging Argentina’s government to allow greater flexibility in its foreign-exchange regime, saying a more dynamic peso would help rebuild reserves and sustain foreign investment, even as top officials insist the current band system will remain unchanged.
President Javier Milei and Economy Minister Luis Caputo have repeated that they will defend the existing framework of daily peso adjustments within a widening band. The policy is said to be in place through the 2027 presidential election, in which Milei is expected to seek reelection.
