Argentina’s Peso Plunges to Historic Low of 1,476 Per Dollar Despite U.S. Intervention

Currency Crisis Deepens as Traditional Finance Falters

Argentina's peso just hit another devastating milestone—crashing to 1,476 against the U.S. dollar despite Washington's intervention efforts. The numbers don't lie: traditional fiat currencies continue their predictable decline while digital assets demonstrate remarkable stability.

Central Bank Interventions Prove Powerless

Even with the full weight of U.S. financial muscle behind stabilization attempts, the peso keeps sinking. This isn't just another currency fluctuation—it's a systematic failure of conventional monetary policy. Meanwhile, Bitcoin and major cryptocurrencies maintain their structural integrity without needing bailouts or political interventions.

The pattern repeats: government currencies crumble while decentralized networks strengthen. Another day, another reminder why smart money keeps flowing into digital assets that can't be manipulated by central bank whims or political agendas.

U.S. intervention fails to calm markets

Milei’s pro-business government has been struggling to calm the chaos that began last month after it lost key local elections. The market selloff hasn’t stopped, and analysts say U.S. help led by Treasury Secretary Scott Bessent has done little to slow investors rushing to the dollar.

Locals are dumping the peso to protect themselves against a possible devaluation if Milei’s bloc performs poorly in the October 26 midterm legislative elections.

Investors fear Milei may have no choice but to devalue the peso after the vote, given the central bank’s falling reserves.

The Romano Group, an Argentine economic consultancy, estimates that the bank has less than $5 billion in reserves, excluding liabilities, a dangerously low buffer. Salvador Vitelli, the group’s head of research, told reporters the dollar demand “has been very strong and is going to continue that way until we have the election results and more clarity on the exchange rate.”

Meanwhile, traders outside Argentina are betting the peso will weaken even further. Offshore contracts known as non‑deliverable forwards have been pricing in faster depreciation beyond the country’s official band.

On Monday, the two‑month forward rate implied the peso could fall below 1,600 per dollar before year‑end.

Bessent, speaking earlier this month on television, called the peso “undervalued” and said he intended to “buy low and sell high.” His words, though, haven’t lifted confidence. Market participants continue to test how far authorities are willing to defend the currency amid growing uncertainty and limited reserves.

Dollar‑denominated Argentine government bonds showed a small rebound on Monday, but they’re still trading far below the levels reached right after the initial U.S. intervention was announced.

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