After the removal of the restriction, the demand for dollars in banks collapsed.

The demand for dollars in banks plummeted by almost 90% compared to the first day after the lifting of the currency cap, just a week later.

A survey conducted among the country's main financial entities revealed surprising data: the purchase of foreign currency, which had caused strong expectations days ago, practically disappeared.

This phenomenon was the main driver of a new abrupt drop in the exchange rate at the beginning of the week, in a context where the supply of foreign currency from the agricultural export sector still doesn't show a significant rebound.

The official dollar was offered in banks at an average value of $1,110, which represented a drop of about 4.3%. Meanwhile, financial dollars quickly aligned with this trend: both the MEP dollar and the dollar with settlement —instruments still used by companies to dollarize— also fell by around 4%.

Meanwhile, the blue dollar remained the highest exchange rate, operating close to $1,150, although it is gradually approaching the official levels.

There are various reasons that explain the sharp decrease in the demand for dollars. Small savers prefer to wait, anticipating that the currency's price could continue to fall. Those who bought the previous Monday, upon learning of the reopening of the cap, already accumulate losses exceeding 10% in just one week.

Meanwhile, several brokerage firms (Alycs) began recommending investments in pesos with positive real returns, taking advantage of the dollar's decline. This strategy would be causing the unwinding of dollar positions or the replacement with bets on local currency assets.

Meanwhile, the retail dollar closed at $1,110, and the wholesale exchange rate fell below $1,100, placing it almost at the same level prior to the implementation of the exchange band scheme.

From Milei's government, they reiterated that they will only intervene in the exchange market when the dollar's value reaches the floor of the band, that is, $1,000. The Argentine president confirmed last week that no foreign currency purchases will be made before that threshold is reached, ruling out the possibility of acting in advance.

According to the agreement with the Fund, the goal is to add around USD 5 billion to the reserves before the end of June, so the government seeks to buy dollars at the lowest possible price.