During his visit to New York with President Javier Milei, Economy Minister Luis Caputo met with investors at an event organized by JP Morgan. At the meeting, the official stated that the government plans to repurchase sovereign bonds and start accumulating reserves, even if the peso operates within its established trading band. Caputo clarified that President Javier Milei has no intention of letting the Argentine currency float freely but will keep it operating within set bands, according to sources familiar with the matter who requested anonymity. However, Caputo said he could consider accelerating the pace of the band adjustments to 1.5% monthly, depending on inflation and demand for pesos. Currently, the upper and lower limits of the operational range are adjusted by 1% per month, allowing the peso to weaken gradually. Caputo expects to present the complete plan—including a schedule for reserve accumulation, debt buybacks, and an already announced 'education debt' bond—within 30 days. While Argentine officials denied any intention of changing the exchange rate regime, Caputo signaled that he would modify the rules to allow the government to buy dollars when the peso is within the band and market liquidity is strong. Caputo did not specify when the dollar purchases would begin, but he said he expects the currency to continue to appreciate as demand for pesos grows. According to the Economy Minister, Argentina plans to repurchase the global bonds maturing in 2029 and 2030 (GD29 and GD30) using a cheaper source of financing.
