Why has the Argentine peso remained relatively stable despite a surge in dollar demand in July 2024?

The peso remained stable because higher oil and agricultural export prices—driven by the war in Iran—generated an unexpected influx of export dollars that offset strong domestic demand for US dollars; as Sebastián Menescaldi of Eco Go stated, 'The war saved us this year,' and Gabriel Caamaño of Outlier noted the market stayed balanced thanks to 'a flood of dollars coming in from companies and provinces issuing debt abroad.'

What explains the sharp imbalance between dollar purchases and sales by Argentines in July 2024?

Dollar purchases surged to $3.4 billion in July—a 35% monthly increase and the highest since last year’s midterm election panic—while dollar sales fell 13% to just $608 million, resulting in individual dollar sales amounting to only about 20% of purchases; analysts attribute this mismatch to public skepticism about the political sustainability of Milei’s economic model and a rush to buy dollars while individuals still can, echoing fears from the failed Macri era.

Oil and Crop Prices Save Milei From Surging Demand for Dollars

Sep 9, 2026

Rising oil and agricultural commodity prices boosted Argentina's export earnings, stabilizing the peso against surging domestic dollar demand. Analysts warn that seasonal factors and election uncertainty could threaten this balance in the future.

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Oil and Crop Prices Save Milei From Surging Demand for Dollars

Oil and Crop Prices Save Milei From Surging Demand for Dollars

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