Milei’s currency shift targets reserve build-up

Board approval: Milei alongside secretary general of the Presidency, Karina Milei, in the Argentine Congress in Buenos Aires. The new measures heed investor calls for a more flexible foreign exchange policy as analysts warn about an overvalued currency. — AFP

BUENOS AIRES: President Javier Milei’s government is unveiling changes to its currency policy and says it will embark on a campaign to build up its depleted foreign reserves, moving a step closer to the free float investors have long desired.

Beginning in 2026, the peso’s trading bands will expand at the same rate as monthly inflation, instead of the current 1% pace.