Argentina Plans Bond Buyback and Reserve Build-Up as Peso Trades Within Managed Band

Argentina’s Economy Minister Luis Caputo has announced plans to repurchase sovereign bonds and begin rebuilding the country’s foreign reserves, according to a Bloomberg report citing sources familiar with the matter. The move comes as President Javier Milei’s administration works to stabilize the economy while maintaining the peso within its managed trading band.

Speaking to around 40 investors at a JPMorgan Chase meeting in New York, Caputo emphasized that Argentina will not fully float its currency. Instead, the peso will continue to trade within established limits, which are currently adjusted by 1% per month to allow for a gradual depreciation. Caputo noted that the pace of these band adjustments could increase to 1.5% per month, depending on inflation trends and market demand for the peso.

The plan aims to bolster investor confidence and strengthen Argentina’s economic position amid ongoing reforms. Caputo intends to present the complete economic proposal within 30 days, outlining strategies for reserve accumulation, debt buybacks, and a proposed debt-for-education bond. These initiatives are designed to support the Milei government’s broader economic overhaul focused on fiscal discipline and structural reform.

Earlier this month, JPMorgan CEO Jamie Dimon expressed optimism about Argentina’s economic direction, suggesting the country may not need additional bank loans. Milei’s administration has earned praise for implementing tough austerity measures and tackling decades of fiscal mismanagement.

Following Milei’s party’s strong performance in the October midterm elections, the government is moving forward with its economic agenda to restore stability, reduce inflation, and attract foreign investment. The bond repurchase and reserve-building plan signal Argentina’s commitment to sustainable growth and market confidence as it seeks to rebuild credibility with global investors.