Argentine peso holds value after float, in boost to Milei

The Argentine peso has held its value after being unleashed from years-long currency controls, defying expectations that the move would send inflation soaring and offering a boost to President Javier Milei ahead of mid-term elections.

Milei’s decision to float the peso came shortly after an unusually large upfront loan deal with the International Monetary Fund, which bolstered the country’s foreign currency reserves.

Milei’s agenda has helped cool inflation and boost economic growth, although sweeping subsidy cuts have angered many.

Senior officials in both China and the US have backed Milei’s economic plans, suggesting he may have achieved the tricky balancing act of pleasing both superpowers.