Argentina’s Currency Regulation Update

Argentina’s central bank has imposed immediate restrictions on foreign currency holdings by commercial lenders, effective until year-end. The rule aims to unwind current dollar holdings, stabilize the peso, and address the anticipated 27% value drop on Monday (potentially 44% under President-elect Milei).

Milei’s team hasn’t commented, but the central bank clarified the measure prevents further dollar accumulation. Despite delaying currency control lifts, the current peso valuation is seen as unsustainable after a recent devaluation to 385 per dollar.

Banks are adjusting liquidity, shifting from Leliqs (short-term loans) to one-day repos. Thursday’s record-low rollover rate of 1.5% raises concerns about potential inflation, already at 143%.

Noatum Logistics will continue to monitor and release updates on the developing situation.

If you have any questions, please contact your local Noatum Logistics representative.