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Argentina Records $52.4 Billion of Private Dollar Purchases as Banks Set Retail Rate at ARS 1,430

A large run of household and corporate dollar buying is testing central-bank reserves within a system of divergent official, informal and financial exchange rates.

Overview

  • The central bank reported that in the first 12 months after lifting individual currency controls Argentines bought US$52,365 million for atesoramiento, making this the largest 12-month gross purchase total since 2019.
  • Major banks told the central bank they will open retail dollar sales at about ARS 1,430 on Monday, June 1, setting a common starting price for public transactions.
  • Parallel and financial rates remain higher than the bank quote with the informal 'blue' around ARS 1,410/1,430, the MEP near ARS 1,432/1,435, the CCL near ARS 1,481/1,484 and the 'dólar tarjeta' at about ARS 1,859.
  • Despite heavy private demand, the BCRA recorded an increase in international reserves of US$2,464 million in April, a key cushion officials say supports the currency liberalization policy.
  • Regional FX markets are broadly steady with the Peruvian sol and Mexican peso trading near recent levels, but investors remain cautious because USIran tensions and U.S. interest-rate expectations could quickly alter flows and pressure Argentina’s need for steady export receipts and external financing.