Argentine exchange rate rises as government considers strategy changes

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The Argentine wholesale exchange rate closed the week at AR$1,512, reaching nominal highs of AR$1,514 and remaining above the AR$1,500 threshold for five consecutive trading days. Economists including Federico Glustein and Joaquín Alvarado noted that this upward trend was driven by seasonal agricultural export declines and low liquidity in peso-denominated financial instruments. While the government previously intervened to keep the rate below AR$1,500, the consistent breach of this level suggests a potential shift in official exchange rate strategy.

Consequences

Market analysts anticipate continued exchange rate tension throughout September, with projections placing the wholesale dollar between AR$1,470 and AR$1,550. Conversely, some reports suggest potential stabilization as seasonal agricultural sales increase and profit remittances abroad continue to lose momentum.

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