Javier Milei loosens his grip on the peso --- Economist

[Finance Prof]

Peso should sink faster now. Still waiting for free float.

https://www.economist.com/the-americas/2025/12/17/javier-milei-loosens-his-grip-on-the-peso

Archived version

 

[Blockchain]

Sounds like good news. Finally getting more realistic! What I find a bit funny is just a few weeks ago didn't Milei and Caputo say they weren't going to change anything. It sounds like the IMF and Washington DC is forcing them to make a change.

https://www.batimes.com.ar/news/economy/milei-gives-in-to-imf-pressure-and-opens-door-to-inflation-risk.phtml

 

[Uncle Wong]

This sounds like it will force inflation to start going back up.

 

[crypto]

This sounds like it will force inflation to start going back up.

I was just reading about this and it seems like many economists think the same thing. Manipulating the currency to make the Argentine peso so strong seems like the only way they were able to control inflation. Will be curious how things go in 2026.

Milei Stymies Wild Peso Swings as He Resets Argentine FX Policy

Every morning at the Argentine central bank, traders on its foreign exchange desk start with a simple mission: Keep the peso from moving too far up or down.

financialpost.com