Argentina uses US$1bil to fend off devaluation


Supporters on a balcony display a flag of Argentina’s President Javier Milei before an open-air political rally at Parque Sarmiento in Córdoba on September 19, 2025. Argentine President Javier Milei blamed "political panic" for rattling markets on September 19, 2025, in the run-up to crucial midterm elections, sending the peso into a tailspin and hurting the country's sovereign risk. (Photo by Diego Lima / AFP)

BUENOS AIRES: Investors are pulling money out of Argentina at a rapidly increasing clip, forcing policymakers to pour US$1bil into the currency market in just two days to prevent a peso devaluation that would derail president Javier Milei’s stabilisation plan and throw the economy back into crisis once again.

Milei’s deep spending cuts and sweeping reforms had been welcomed by global investors soon after the libertarian economist took office in late 2023, setting off rallies across its financial markets.

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Argentina , peso , inflation , GDP , consumer

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