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Weekly Report - 18 December 2025 (WR-25-50)
ARGENTINA: Milei’s tightrope between free currency and inflation
Argentina’s government led by President Javier Milei this week announced that it will allow the peso to fluctuate more freely and step up the purchase of US dollars to bolster its international reserves. The move marks a departure from its previous strategy of pursuing a strong peso as a means to help anchor inflation. Since April, the currency band within which the peso is allowed to trade expanded by only 1%, even though inflation exceeded that rate every month and reached 2.5% in November.
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