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Argentina

Caputo rules out peso devaluation and outlines measures to cut business costs

The economy minister's stance signals the government will keep its currency band and disinflation program, a key issue for exporters and manufacturers.

Photo: vespernews.com

What happened

Economy Minister Luis Caputo told a gathering of industrial leaders in Buenos Aires that the government will not devalue the peso to boost export competitiveness. vespernews.com+1 Caputo argued that abandoning currency stability now would undo months of progress in taming inflation and rebuilding investor confidence. vespernews.com He outlined a package of new measures to ease costs, including steps to simplify tax compliance and cut bureaucratic hurdles. vespernews.com Caputo said enhancing competitiveness requires tax reductions, regulatory simplifications and lower financial costs. Blue Dollar

Around it

Some exporters and economists have pushed the Milei administration to loosen its currency band, arguing a relatively strong peso has made Argentine goods pricier abroad. vespernews.com Argentina had the second-most significant industrial decline globally from 2023 to 2025, with manufacturing falling 7.9%, according to a consultancy report using United Nations data. Blue Dollar Industrial activity fell 4.9% year on year in July, a downturn comparable to pandemic-era levels. Blue Dollar

Sources

  1. vespernews.comArgentina's Caputo rules out devaluation to boost competitiveness
  2. Blue DollarCaputo dismisses devaluation as a strategy for enhancing competitiveness

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