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2025-09-18 03:35:57
Argentina's Central Bank denies peso breaches trading band ceiling, citing technical factors. On Wednesday, Argentina's central bank denied the peso had breached its trading band, citing slight discrepancies between its calculations and those based on a publicly disclosed formula. According to an agreement reached between Argentina and the International Monetary Fund (IMF) in April, the upper and lower limits of the trading band are gradually widened by 1% each month, evenly distributed across each day. Using this calculation method, the peso briefly reached 1,474.5 per dollar on Wednesday, exceeding the upper limit of 1,474.345. However, because Argentina's official trading system only allows quotes in 50-cent increments, the central bank rounds off the upper limit in its calculations, using 1,474.5 as the upper limit. From the central bank's perspective, the peso has not breached the band. Under the $20 billion agreement signed between Argentina and the IMF, if the upper limit is breached, the central bank, led by President Milley, can intervene directly in the market and sell dollars.
