Argentina’s booming energy sector is easing concerns that a strong peso will dent efforts to bolster foreign exchange reserves ahead of looming debt payments. Rising oil and gas production on the back of more drilling in the country’s Vaca Muerta shale fields is providing the central bank with a reliable source of dollar inflows, independent of the peso’s appreciation in recent months. Investors are keen to see how President Javier Milei advances his FX policy as it may hinder efforts to grow holdings at the central bank. That cash is ammunition that authorities need to pay debt holders and eventually lift capital controls, making every dollar count. There’s more than $4 billion in bond payments due in July.
January 29, 2025
SOURCE: BUENOS AIRES TIMES
Argentina’s energy export surge quells fears over currency management