Argentina Sells Most FX Reserves Since 2019 on Importer Demand

[MilHojas]

Argentina Sells Most FX Reserves Since 2019 on Importer Demand

Argentina’s central bank on Thursday sold the most foreign reserves in one day since October 2019 after officials eliminated a key tax on imports, igniting corporate demand for dollars.

www.bnnbloomberg.ca

 

[LuckyLuke]

This is a shoe that I've been waiting for to drop. While his efforts with Amazon imports and the reduction of the dolar tarjeta to tamp down domestic price gouging are laudable, it will probably generate more pressure on foreign reserves and a corresponding increase in the blue value. Soy futures are in a bear market, crude oil is flat, and even lithium prices have plummeted. Milei is stuck between a rock and a hard place with few bright spots to increase it's dollar holdings. Try as he might, he does not have enough dry powder to keep "perceived inflation" from rearing it's ugly head again.