The parallel exchange rates plummeted and the country risk index surged this week in the first days of the government applying the “monetary scheme” President Javier Milei announced on Saturday, targeting peso emission by selling dollars in financial markets. Analysts consulted by the Herald had conflicting views on whether this would help achieve the scheme’s stated goal of stabilizing foreign exchange markets long term.

Starting Monday, the government is selling U.S. dollars in the financial markets in a bid to decrease the parallel exchange rates after they reached record-high levels last week. The strategy, also used during Alberto Fernández’s administration, was presented by Milei as a step toward “zero monetary emission” as the government aims to absorb the same amount of pesos the Central Bank issues to purchase U.S. dollars.

As with the previous administration, Milei’s unexpected announcement faced criticism for depleting the Central........

© Buenos Aires Herald