The peso sharply depreciates against the US dollar, and the Central Bank of Argentina urgently releases US dollars to stabilize the market on the first day of the exchange rate reform.

Argentina launched a new foreign exchange trading band system on January 1, allowing the peso to fluctuate significantly against the US dollar. This major change immediately triggered a chain reaction in the market.

According to feedback from multiple trading institutions, on the first trading day after the new system took effect, the Argentine Ministry of Finance actively intervened by selling US dollars to stabilize the peso's decline against the dollar. Informed sources involved in the trading estimated that the dollar sell-off on that day ranged between 150 million and 200 million USD.

Under the new framework, the peso's fluctuation range is linked to inflation. Previously, the monthly fluctuation of the peso against the dollar was strictly limited to within 1%. Now, this “ceiling” has been broken, and the trading band is dynamically adjusted according to monthly price increases. This means the exchange rate has greater flexibility but also introduces more market uncertainty.

The results on the first trading day showed that market reactions to this change were not mild. The peso depreciated by 1.4% against the dollar, with the final trading price falling to the level of 1475. To prevent further deterioration, the Argentine Ministry of Finance chose to intervene on that day by releasing dollar reserves to curb excessive volatility, reflecting authorities' concern for exchange rate stability.

This scene reflects that, although the new system grants the peso more market-oriented space against the dollar, Argentina's decision-makers remain cautious about excessive devaluation and will intervene directly when necessary to maintain order.