Every trading day, Argentina's central bank buys dollars steadily in the currency market. After two and a half years of Javier Milei's presidency, the country has reached a milestone it has not seen since 2019. The central bank's gross foreign reserves have climbed to roughly US$48 billion, their highest level in seven years.
This represents a dramatic turnaround. When Milei took office in December 2023, reserves were under US$24 billion. Today's amount is more than double that figure. Milei, a libertarian economist, won power promising to cut inflation and rebuild the central bank's depleted accounts through a radical free-market approach.
Under the 2026 framework, the central bank, known as the BCRA, aims to buy up to US$10 billion in dollars over the year. It caps daily purchases at 5% of the official market's traded volume to avoid distorting prices. The strategy is led by Economy Minister Luis Caputo and central bank Governor Santiago Bausili.
Milei's government also lifted most currency controls in April 2025. Starting in 2026, the peso's official trading band widens at the rate of monthly inflation rather than a fixed pace. Argentina expects a wave of dollars to arrive, up to US$30 billion over six months, largely from exports.
However, bond markets tell a different story. Investors demand much higher yields for bonds maturing after Milei's term ends in December 2027 compared to those maturing in 2027. This gap reflects investor concern that a future government could reverse his market-friendly policies. For now, the central bank continues buying dollars daily, hoping to maintain confidence.