The government says exchange rate policy will remain unchanged—the question is for how long

ARGENTINA - Report 10 Nov 2025 by Joaquin Cottani

The president and the economy minister have said that no significant changes in FX policy are in the cards. In this report, I evaluate whether, given the net demand for dollars from the SPN, the rest of the economy will have the capacity to generate the excess supply necessary to satisfy that demand without the FX policy being modified. For this to happen, either the BCRA will have to spend another year without accumulating reserves, or real interest rates will be very high. Neither of these things augurs a good 2027, which is a key year for the president’s reelection. Given what is at stake, both for President Milei and for President Trump, whose political and financial support prevented the FX from collapsing in October, I expect that FX policy, along with monetary policy, will be eventually modified.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2025 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.