Having burned through billions of dollars in reserves, Argentina’s government is getting creative as it looks to defend the peso ahead of crucial midterm elections later this month.
The Central Bank spent US$1.1 billion in the spot market last month when the currency breached its trading band and is now coming up to a limit imposed by Argentina's main exchange in the derivatives market. It raised its short position in dollar futures to around US$8 billion at the end of September, according to people familiar with the matter, just shy of the US$9-billion cap set by the A3 exchange.
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