In a context of growing political and economic tension, the Argentine government announced this week a measure that marks a turn in its exchange strategy: the direct intervention of the national treasure in the market of the dollar.
The decision of dollarcommunicated by the Secretary of Finance Pablo Quirno, was supported by President Javier Milei and his economic team, and is part of what from the Casa Rosada describe as a “conjunctural” action to contain exchange volatility in the middle of the electoral campaign.
The measure implies that the Treasury will begin to sell currencies in the market -free market, with the aim of guaranteeing its liquidity and avoiding abrupt jumps in the price of the price of the dollar. Until now, the Government had sustained an administered flotation scheme, with intervention bands agreed with the International Monetary Fund (IMF), which allowed acting only when the exchange rate played the roof of the upper band.
However, given the growing pressure in the market and the proximity of the elections, an early intervention was chosen, even before that limit was reached. From the presidential environment they explain that the decision responds to the need to generate tranquility in a period of high sensitivity.
“It is a period of anxiety, with a lot of noise. We seek to generate peace and stability,” said a high -level source in the Casa Rosada. The intention is clear: prevent political uncertainty from translating in a exchange rate that can impact inflation and social humor in the face of elections.
The announcement arrives in the final stretch towards the legislative elections in the province of Buenos Aires, scheduled for September 7, where the ruling party anticipates a defeat and seeks that the difference be as limited as possible.
Intervention
In the Casa Rosada they admit that a gap greater to five points could shoot more uncertainty for the national elections of October 26, where the governance of the libertarian project is played.
In that framework, exchange intervention becomes a political tool: keep the dollar Under control is key to avoiding a transfer at prices that press on inflation just before the electoral test. He Government It seeks to send a clear signal to the markets: the official exchange rate will not move from its place until after the elections.
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