Argentina’s new bid to ‘sterilize’ peso emissions lowers parallel dollar rates… now what?

Parallel dollar rates fell after Argentina began selling dollars in financial markets to absorb peso emissions. The blue dollar dropped about 6.3% from 1,500 to 1,415 pesos, and the blue-chip swap rate fell nearly 10%.

Analysts disagree on whether the scheme will stabilise FX long term, and critics warn it depletes central bank reserves.