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2025-09-20 07:14:36
[Foreign exchange market intervention causes Argentina's foreign reserves to shrink by $1 billion; President Milei senses the "panic" triggered by Argentines selling the peso] Argentine President Javier Milei has reportedly lost the trust of investors, and he's well aware of it. Investors are pulling money out of Argentina day after day, fearing that the brash, libertarian president—despite his bold plans to overhaul the economy—will, like so many of his predecessors, abandon the defense of the peso and allow it to plummet. "The market is in panic mode," Milei said, speaking briefly to a local reporter late Friday. That day, Argentine central bank traders poured $678 million into the foreign exchange market, desperate to meet demand for hard currency and prevent the peso from collapsing. This brought the total amount of intervention over three days to $1.1 billion. This scale of intervention is staggering for a country where, according to economists' best estimates, Argentina has less than $20 billion in liquid foreign exchange reserves. For Milei, the security of his presidency hinges on curbing the hyperinflation that has plagued Argentines, and a stable peso exchange rate is crucial. If the peso collapses, consumer prices will soar again, and Milley's hopes of maintaining the popular support he needs for his reform agenda will be largely dashed. On Friday, he vowed to defend the peso at all costs, echoing the words of his chief economic aide the day before: "We will take all necessary measures to preserve the quality of life of the Argentine people."
