The Argentine government announced a change in its exchange rate policy, as the Treasury is now set to intervene in the exchange market. In a post on X, Finance Secretary Pablo Quirno said that the goal is to “ensure liquidity” and that the market “operates normally” amid renewed exchange volatility.

El Tesoro Nacional anuncia que a partir del día de la fecha participará en el mercado libre de cambios con el fin de contribuir a su liquidez y normal funcionamiento.

— Pablo Quirno (@pabloquirno) September 2, 2025

The announcement means the government is backtracking on the decision they made in April to allow the exchange rate to “float.” At the time, the administration determined that the U.S. dollar-peso rate would move freely between two rates depending on market supply and demand, a scheme known as “exchange bands.” 

Within this policy, Central Bank intervention was only allowed beyond band limits. This meant that they would purchase dollars when the rate fell below the minimum and would sell when it shot above the maximum, with the goal of always keeping the rate contained.

Argentina’s current agreement with the International Monetary Fund limits the government’s ability to intervene in the foreign exchange market. Economy ministry sources told the Herald that the IMF has approved the announced intervention. The fund did not respond to a request for comment.

The government has been facing significant financial uncertainty over the past four weeks due to the upcoming October national-level midterm elections. In addition to that, they are also undergoing a political crisis caused by leaked recordings involving Presidency Secretary Karina Milei, who is also the president’s sister, pointing to an alleged corruption ring.

Over the past week, market analysts have been warning that the administration is intervening in the foreign exchange market via the Treasury’s foreign currency reserves. Consulting firm Aurum Valores estimated that, as of August 21, the cumulative drop of reserves lingered around US$262 million since the beginning of the month.  

The trends show that the daily outflow of foreign currency intensified in the second half of the month, especially between August 16 and 21.

This is a developing story. Check back for updates.