Argentina’s central bank is loosening the reins on its currency for the first time in years, a move made possible by a reserve stockpile that hasn’t looked this healthy since 2019.
Gross reserves have climbed to $46.24 billion, giving President Javier Milei the financial breathing room to let the peso trade more freely.
What’s actually changing
On December 15, 2025, Argentina’s central bank announced it would allow the peso’s trading band to widen at the monthly inflation rate. That rate stood at 2.5% as of November 2025, a number that would have seemed like a fantasy just two years ago when Argentina was staring down triple-digit annual inflation.
Back in April 2025, Argentina lifted most of its capital controls, locally known as the “cepo.” That sweeping deregulation was backstopped by a $20 billion loan agreement with the International Monetary Fund, which included an immediate $12 billion disbursement.
