ARGENTINA · PESO AND DOLLAR
Key Facts
- The message Economy Minister Luis Caputo again ruled out a peso devaluation, saying the exchange rate matters little for costs.
- The audience Business leaders at the Argentine Industrial Union (UIA), the main manufacturers’ group, this week.
- The reference Cheaper credit would save firms about 40 points a year, he said, like a weaker peso.
- The market The wholesale dollar trades near 1,550 pesos per US$1, with the official band ceiling higher.
- Power Index Argentina ranks 4th of 14 in The Rio Times Latin America Power Index, with 60.2 points (November 2026 edition).
Argentina’s economy minister, Luis Caputo, again ruled out a peso devaluation this week, telling industrial leaders the exchange rate matters little for their costs. He said cheaper credit would help firms as much as a dollar at 2,100 pesos (about US$1.35 at 1,550 pesos per US$1).
For US investors in Argentine bonds and shares, the message is that the government will defend the current peso. It also shows where Caputo sees the real problem: the cost of borrowing.
What Caputo Said to Industry
Caputo, the economy minister in President Javier Milei’s government, spoke to business leaders of the Argentine Industrial Union (UIA), the main group of local manufacturers. He said: “Fíjense lo poco importante que es el tipo de cambio”, meaning look how little the exchange rate matters.
His argument was that the weak activity in industry does not come from the value of the dollar, which has moved little this year. He pointed instead to regulations and the cost of financing.
The Dollar Reference Explained
Caputo said small firms now often borrow at 70%, 80% or even 90% a year, while the market rate is 23% to 25%. If a firm moved to a rate of 35% or 40%, it would save about 40 points a year.
He called that saving the equivalent of a dollar at 2,100 pesos (about US$1.35), a level about 35% above today’s market rate. It was an illustration, not a new target announced by the government.
Where the Dollar Stands
The wholesale dollar trades near 1,550 pesos per US$1, and the band ceiling was about 1,956 pesos per US$1 on 4 November. The central bank lets the peso float inside a band that moves with inflation.
The official statistics institute INDEC reported monthly inflation of 1.9% for September 2026. Some analysts call the gap between the market rate and the ceiling a band inside the band.
Why Borrowing Costs Are the Target
Caputo said his goal is to bring small-firm loan rates down to 35% or 40%, which he said would still be positive after inflation. He blamed distrust for keeping savings in 30-day deposits, which limits longer loans.
Argentina’s markets are also under stress, with the country risk index up sharply this week. An earlier Rio Times look at what a devaluation would test in reserves explains the stakes.
In Plain English, Who Is Who
Luis Caputo is Argentina’s economy minister and the main architect of Milei‘s economic plan. The UIA is the Argentine Industrial Union, which speaks for factories and manufacturers.
A devaluation is a deliberate cut in the official value of a currency, which makes imports dearer and exports cheaper. The exchange-rate band is the range in which the central bank allows the peso to trade.
What It Means for You
If you hold Argentine peso assets or sell goods there, Caputo’s words signal no sudden currency reset. Ruling out devaluation supports confidence in the current peso level.
Travelers and US companies paying in pesos should still expect monthly inflation near 2% to lift prices. Lower loan rates, if they come, would help local customers and suppliers.
What Is Not Known
No change to the exchange-rate band was announced, and Caputo did not give a date for lower loan rates. The exact date of his speech was not stated in the reports.
The 2,100-peso level (about US$1.35 at 1,550 pesos per US$1) is his illustration, not an official target. Whether the peso will move toward the band ceiling is not known.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
Did Argentina devalue the peso?
No. Economy Minister Luis Caputo again ruled out a devaluation this week and said the exchange rate matters little for costs.
What is the 2,100-peso figure?
Caputo used it as an illustration. He said cutting loan costs from 70%-90% to 35%-40% would save about 40 points a year, like a dollar at 2,100 pesos (about US$1.35).
Where is the Argentine dollar now?
The wholesale dollar trades near 1,550 pesos per US$1. The band ceiling was about 1,956 pesos per US$1 on 4 November.
Why does it matter to US investors?
A stable peso policy supports Argentine bond and share prices held by US funds. Caputo’s focus on borrowing costs also points to policy aimed at lowering interest rates.
Sources: Argentine Ministry of Economy, remarks by Minister Luis Caputo to the Argentine Industrial Union (UIA), 3-4 November 2026; INDEC, consumer price index for September 2026, 13 October 2026; Central Bank of Argentina, exchange-rate band rules.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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