Argentina renews $8.4 trillion in debt to stabilize currency

The Argentine government has successfully renewed approximately $8.4 trillion in Treasury debt, slightly exceeding the initial $8.1 trillion target. The Ministry of Economy achieved a rollover rate of 103.46%, effectively removing $300 billion from circulation to support a contractive monetary policy aimed at stabilizing the exchange rate and controlling inflation.

The auction focused on short- and medium-term instruments, primarily LECAPs and dual bonds, with maturities concentrated between late 2026 and 2027. This strategy avoids extending debt into longer terms. Approximately $4.07 trillion was allocated to the shortest LECAP, which carries a 2.07% interest rate.

While the move helps contain the dollar and inflation, economists note the potential trade-off of stagnating economic activity. Regarding the foreign exchange market, the official dollar remained stable, and the Central Bank recorded a modest purchase of $5 million, bringing its monthly total to $123 million.