Economy Politics Local 2026-01-02T22:36:42+00:00

Dollar Reaches New High Under Argentina's New Exchange Rate Policy

In Argentina, the dollar continues to rise, reaching new highs in various market segments after the introduction of a new floating exchange rate system linked to inflation. The government is preparing for a major debt payment.


Dollar Reaches New High Under Argentina's New Exchange Rate Policy

On the last day of January, the dollar is expected to reach 1,564 pesos. The wholesale market, which is the benchmark for observing the distance from the band's ceiling, reacted with a 1.7% increase, bringing it to 1,475 pesos. At the end of 2025, the price in this segment was 1,457 pesos. This places it 56 pesos below the day's band ceiling. For the saver, at the Banco Nación, there was an increase of 15 pesos, bringing it to close at 1,495 pesos. This brings it closer to the 1,500 pesos it last touched in the first week of November 2025. Financial dollars also recorded advances of around 1%: the MEP was approaching 1,504 pesos while the exchange rate with liquidation (contado con liquidación) was operating near 1,539 pesos. With this new dollar scheme, the Central Bank hopes to add more foreign currency that will allow it to reinforce its reserves. In one week, the government must meet debt payments of US$ 4,200 million. The economic team should still raise half of those funds, for which it could resort to a REPO with international banks.