Midterms are 'more important than 2027 presidential vote,' says Caputo

Economy Minister Luis Caputo has declared that Sunday’s midterm legislative elections are “more important than the 2027 presidential vote.”

Speaking Wednesday after another day of turbulence for Argentina’s peso, Caputo admitted that “the world is watching” the upcoming vote to see if President Javier Milei’s government retains the support of the country’s voters.

Argentina is facing a run on the currency that shows no sign of easing up, despite repeated financial backing from the United States government. US President Donald Trump has said continued support from Washington is dependent on a strong performance for Milei’s La Libertad Avanza party in this weekend’s vote.

“The world is watching these elections; it wants to see our people reaffirm this course,” said Caputo on Wednesday during an event at the Córdoba Stock Exchange.

The minister declared publicly that the current exchange rate regime “will remain exactly the same,” an attempt to dispel fears of an imminent post-election devaluation of the peso.

Since April, Argentina has operated a managed-float regime that lets the peso trade within a band that widens by one percent each month.

The minister insisted that the current exchange system would remain in place “regardless of the result” of the elections.

“Today we have a very well-capitalised Central Bank, solid fundamentals and an exchange rate at an absolutely reasonable level,” he said.

The currency has been under fierce pressure from financial markets for over a month now. Investors consider it overvalued, though US Treasury Secretary Scott Bessent said earlier this month it was undervalued.

The peso weakened again on Tuesday despite intervention by the Central Bank, which sold US$45.5 million to slow its decline. Ito closed on Wednesday at 1,515 per US dollar, almost  unchanged from the previous day.

In recent weeks, the United States has pledged financial assistance to Argentina totalling US$40 billion. On Monday, an agreement was signed for an initial currency swap worth half that amount. The second US$20 billion may be backed by hedge funds and banks, according to Bessent.

– TIMES/AFP