Argentina’s President Javier Milei has rejected pressure from investors to allow the peso to float freely, saying he will maintain controlled exchange rate bands to stabilize the country’s turbulent economy, the Financial Times reported on Thursday.
In an interview with the British newspaper, Milei said his government would keep the peso within “gradually widening” limits against the U.S. dollar until at least the next general elections in late 2027.
The move, he said, aims to curb Argentina’s chronic economic volatility and restore market confidence without triggering another financial shock.
Milei, a self-described libertarian and free-market advocate, won last month’s midterm elections, strengthening his political mandate to push through sweeping economic reforms.
Despite his pro-market credentials, his decision to delay a full float of the peso has disappointed some investors who hoped for faster liberalization of Argentina’s tightly managed currency system.
The president also told the Financial Times that he plans to accelerate his free-market reform agenda and deepen his strategic alignment with U.S. President Donald Trump, a close ideological ally.
Milei’s government has been grappling with high inflation, dwindling foreign reserves, and a fragile banking sector, factors that make a sudden currency float potentially risky.
Analysts say his cautious approach reflects a desire to balance market expectations with the need to avoid a repeat of Argentina’s past currency crises.
Source: Reuters
Written By Rodney Mbua
