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Argentina's Peso Plummets Amid Massive Dollar Sales

9/20/2025

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Story summary
  • Argentina's central bank sold $678 million on September 19, its largest daily dollar sale in nearly six years, totaling $1.1 billion over three days.
  • The peso hit an all-time low of 1,520 per dollar in the informal market, raising concerns about monetary policy sustainability.
  • President Javier Milei's government faces pressure from legislative defeats and rising disapproval ratings ahead of the October 26 midterm elections.
  • Analysts caution that ongoing dollar sales may deplete reserves, risking debt payments and a potential exchange-rate regime change.
  • Argentina's country risk index reached about 1,500 basis points, indicating investor skepticism, with central bank reserves at $39.26 billion and net intervention reserves at $6 billion.