Argentina sells $45.5m to stem peso slide ahead of vote
Argentina’s central bank intervened on Tuesday by selling 45.5 million dollars to defend the peso ahead of Sunday’s legislative elections. The currency dropped 8.48 percent against the dollar since Sept. 8 after President Javier Milei’s party lost a key provincial vote. The peso closed at 1,515 per dollar under the official rate and 1,490.50 at the alternative rate used for foreign deals.
US Treasury Secretary Scott Bessent announced a new 20 billion credit line last week, raising total American assistance to 40 billion. The elections will decide whether budget-cutting Milei gains more parliamentary power for his second term. President Donald Trump warned against generosity toward Argentina if Milei loses support.
Monthly inflation climbed to 2.1 percent in September after three straight increases despite Milei reducing it by two-thirds across two years. The economy shows stagnation with falling consumption and interest rates exceeding 100 percent annually. The central bank last sold over 1.1 billion dollars across three days in September to support the overvalued peso.
