A technical comment by Federico Sturzenegger in an international forum was enough to upset the Argentine markets and spark speculation about an imminent change in the exchange rate regime. On October 14, Bloomberg released a cable that quoted the Minister of Deregulation stating that “Argentina will have a floating exchange rate very soon.” The phrase, interpreted as an advance of devaluation, shot up the MEP dollar by 3% and the CCL by 2.5% in minutes, in full countdown to the legislative elections on October 26.
Hours later, Sturzenegger denied the version on X (ex Twitter). “In no way did I say or want to express the possibility of a change in the exchange rate regime,” he clarified, and attributed the misunderstanding to the agency. The clarification sought to calm the City, but opened a new debate on the Government’s economic communication and its internal coordination.
During his presentation at the Bloomberg Global Regulatory Forum, the official had explained the Central Bank’s current band system – a corridor between $1,000 and $1,400 adjusted by crawling peg – and maintained that these bands “open gradually over time”, which would allow an “orderly” transition towards pure floating once the economy is stabilized. Bloomberg translated that explanation as an imminent announcement, generating a domino effect.
The Minister of Economy, Luis “Toto” Caputo, came out to support him: “The bands are not going to change, neither before nor after the elections,” said his entourage. In parallel, analysts spoke of “unnecessary noise” in an economic team that, although united, faces political and market pressures.
The episode showed how sensitive the climate prior to the elections was. Since the beginning of his mandate, Javier Milei’s Government has maintained a mixed scheme to contain inflation and take care of reserves. The ruling party admits that a total float of the dollar is the ultimate goal, but doing so now would be risky. The official clarification managed to calm the markets and stabilize the dollar, although it exposed the fragile economic balance of the moment.
