The foreign exchange market in the Milei era

ARGENTINA - Report 05 Dec 2024 by Joaquin Cottani

This is the second report in a trilogy whose main purpose is to make sense of current market optimism while raising awareness of the risks market participants will face between now and the October 2025 midterm election. The first report dealt with inflation and whether it had converged with a level consistent with exchange rate depreciation. This report discusses the FX market in all its complexities and wonders, among other things, if the 10% parallel gap is sustainable.

Now read on...

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