Argentina's Central Bank Makes Smallest Weekly Dollar Purchase of the Year Amid High Demand

Argentina's Central Bank secured an additional $16 million in foreign currency this week through market interventions, bringing its total weekly acquisition to the lowest of the year. August has seen purchases totaling $111 million, a significant drop from previous weeks. The bank has accumulated $13.438 billion year-to-date, representing 34% of its 2026 minimum target and 79% of its maximum goal of $17 billion.

The weekly acquisition fell short of earlier figures, with the last week of January seeing $180 million and the end of June recording $197 million. The highest weekly purchase occurred in mid-July, when the bank acquired $1154 million. This slowdown was anticipated by the market, which noted the government's strong commitment to preventing the wholesale dollar from exceeding $1500.

Economists like Santiago Casas of EcoAnalytics believe the government is balancing monetary policy with a focus on the dollar and interest rates. He predicts the government will try to maintain the wholesale dollar around $1500 but questions its long-term success unless peso rates rise and contain demand. Federico Glustein agrees, citing seasonal factors like lower agricultural liquidation and increased energy imports, alongside growing portfolio dollarization and political uncertainty, as challenges to the central bank's acquisition goals.