Argentina Tightens FX Rules Again for Banks as Peso Wavers (1)

Argentina increased foreign-currency restrictions on commercial lenders yet again, as President Javier Milei’s government ramps up efforts to support the peso and ease inflation ahead of midterm elections.

The central bank issued new rules on Friday in a bid to tighten oversight of the foreign-exchange market and curb volatility, according to a statement published on its website. The peso strengthened as much as 1.4% after the news, before reversing course and closing almost 0.7% lower at 1,342 pesos per dollar.

Javier Milei’s government is working to prop up the Argentine peso ahead of midterm elections..

Photographer: Erica Canepa/Bloomberg

Effective immediately, banks can’t increase their daily spot FX position on the last business day of the month, …