Adrift Weight, Shaken Confidence, Milei Retracts and Central Bank Sells $53 Million to Stabilize Dollar and Avoid New Escalation in Argentina

Written by Geovane Souza

Published on 18/09/2025 at 20:13

O Banco Central (BCRA) vendeu US$ 53 milhões após o dólar atingir o teto da banda em 1.474,50 pesos.

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Amid Electoral Defeat in the Province of Buenos Aires and the Scandal Involving Karina Milei, the Central Bank of Argentina Intervened for the First Time Since April and Sold US$ 53 Million to Keep the Dollar Within the Exchange Band.

Argentina experienced, on Wednesday (17), the first direct intervention in the exchange rate since the adoption of the band regime in April. The Central Bank (BCRA) sold US$ 53 million after the dollar hit the ceiling of the band at 1,474.50 pesos in the wholesale market, triggering the mechanism agreed upon with the IMF, according to local media and international agencies.

The action took place a day after the Milei government’s defeat in the legislative elections of the province of Buenos Aires and amid political and judicial pressures caused by audiotapes and allegations mentioning the president’s sister, Karina Milei.

Intervention “at the Trigger” of the Exchange Band

The BCRA began selling when the quotation touched the upper limit of the fluctuation band, a parameter that, under the agreement with the IMF, expands by 1% per month and authorizes the bank to act when the ceiling is reached. The sale of US$ 53 million was described as the first since the scheme came into effect in April 2025, in an effort to defend the peso and avoid drastic devaluation movements. Infobae, Buenos Aires Herald, and Reuters detailed the day’s dynamics and the program rules with the Fund.

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Political Shock and Loss of Confidence

The decision came after the defeat of Libertad Avanza in the province of Buenos Aires on September 7 — a setback considered crucial for market sentiment, given the electoral and fiscal relevance of the district. Reuters and Buenos Aires Herald reported a lead of over 13 points for peronism, reinforcing the perception of difficult governance for the Argentine presidency.

This situation is compounded by the audiotapes and judicial dispute surrounding Karina Milei, the secretary-general of the Presidency. Articles from Reuters, WSJ, El País, and Infobae detail the impact of the case on expectations and the discussion about alleged bribery requests in the policymaking agency for people with disabilities (ANDIS), something that the government denies. The subject has heated the political climate and added uncertainty to investors’ radar.

With cooling growth and monetary tightening already tested, the “defensive appreciation” of the dollar ultimately required the direct action of the BCRA. Analysts consulted by international agencies believe that targeted interventions may contain peaks of stress, but erode reserves if capital flows do not improve.

Risks and Limits of the Strategy

The intervention at the ceiling prevents the regime from breaking and sends a message of commitment to the IMF program, which provides for a mobile and transparent band. At the same time, it exposes the dilemma between defending the peso and preserving reserves, particularly while confidence has not been restored and politics remains noisy.

If the exchange rate remains pressured, the government may be forced into new auctions, increasing the cost of keeping the dollar within the band. Normalization will depend on fiscal improvements, recomposing reserves, and relief from political risk after the electoral cycle. As highlighted by FT and Reuters, this balance is fragile and sensitive to surprises. Any new shock (judicial, electoral, or external) could reignite demand for the dollar.

For companies and consumers, containing exchange rate jumps helps to mitigate pass-throughs and preserve import supply chains for essential goods. But volatility remains high, and the impact on interest rates, credit, and activity continues to be on the market’s radar.

Do you think that the intervention was a necessary retreat to avoid a new exchange rate run or a sign of weakness that might encourage attacks on the peso? Leave your comment and say if you agree with the use of reserves at this moment.

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Adrift Weight, Shaken Confidence, Milei Retracts and Central Bank Sells $53 Million to Stabilize Dollar and Avoid New Escalation in Argentina

Amid Electoral Defeat in the Province of Buenos Aires and the Scandal Involving Karina Milei, the Central Bank of Argentina Intervened for the First Time Since April and Sold US$ 53 Million to Keep the Dollar Within the Exchange Band.

Intervention “at the Trigger” of the Exchange Band

Political Shock and Loss of Confidence

Risks and Limits of the Strategy

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Adrift Weight, Shaken Confidence, Milei Retracts and Central Bank Sells $53 Million to Stabilize Dollar and Avoid New Escalation in Argentina

Amid Electoral Defeat in the Province of Buenos Aires and the Scandal Involving Karina Milei, the Central Bank of Argentina Intervened for the First Time Since April and Sold US$ 53 Million to Keep the Dollar Within the Exchange Band.

Intervention “at the Trigger” of the Exchange Band

Political Shock and Loss of Confidence

Risks and Limits of the Strategy

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

BRICS is preparing a payment system inspired by the Brazilian PIX that will allow direct transactions between countries using national digital currencies without relying on the dollar or Western banks as intermediaries.

Ethiopia has banned gasoline and diesel cars, placed over a hundred silent electric buses on the streets of Addis Ababa, and now aims for half a million electric vehicles by 2030, all powered by Africa’s largest dam and a courage that few countries have shown.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

On the coast of China, fishermen received an official reward after finding 10 foreign underwater devices capable of “stealing secrets” in just two years, showing that the silent war for the seabed has already reached the nets of those who rely on fishing.

In the South Atlantic, three isolated volcanic islands cause the wind to draw perfect spirals visible from space: a rare phenomenon called von Kármán vortex streets forms symmetrical patterns behind the peaks of the South Sandwich Islands and was recorded by the NOAA-20 satellite in 2025.

Scientists warn that Earth’s oxygen has an expiration date and that the Sun itself will be responsible for ending the air we breathe by making photosynthesis impossible in about one billion years.

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