That gesture caused a shock of confidence in the markets and caused an immediate collapse of the dollar: the blue dropped from $1,475 to $1,410 within hours, while the official wholesale rate began to fall to $1,408.
The Central Bank sold dollars at a price 105 pesos (231 pounds) higher than the current one, withdrawing a large amount of pesos
That gesture caused a shock of confidence in the markets and caused an immediate collapse of the dollar: the blue dropped from $1,475 to $1,410 within hours, while the official wholesale rate began to fall to $1,408.
The downward movement intensified a day later, after the much-anticipated meeting between Milei and Donald Trump during the UN General Assembly. The meeting was interpreted as a political gesture of great significance and reinforced the perception of international support for the Argentine economic program. As a result, the official wholesale dollar continued to fall and closed on September 23 at $1,369, consolidating the correction.
Following the strong support for the libertarian model from the US, those who bet on the government's collapse lost, since the dollar not only did not skyrocket, but actually plummeted. Additionally, the BCRA succeeded in withdrawing a huge amount of expensive pesos from the economy, the United States provided its support, and the political photo with Trump added confidence. Looking ahead, new announcements are expected that could deepen the positive results.
Amid a week marked by exchange rate tension, the band system implemented by Javier Milei's government proved its effectiveness, and those who bet against the model in search of an uncontrolled devaluation saw their expectations frustrated and, in many cases, lost a lot of money.
The combination of interventions by the Central Bank (BCRA), support from the United States Treasury, and the political backing represented by the meeting between Milei and Donald Trump in New York caused a major shift in the market, with the wholesale dollar, which days earlier was at the top of the band, falling this Tuesday to $1,369 for sale.
Between September 17 and 19, the BCRA intervened forcefully to sustain the top of the exchange rate band, selling a total of USD 1.11 billion. All these operations were carried out around $1,474.50 per dollar, a value that today is 105 pesos more expensive than the current rate, which allowed a large amount of pesos to be withdrawn from the economy and, at the same time, demonstrated the strength of the official scheme.
Milei's government's strategy paid off when, on September 22, the United States Treasury announced that it was willing to provide support to Argentina with multiple tools: loans, currency swaps, and even direct purchases.