Argentina’s central bank has restricted the amount of foreign currency commercial banks can hold. The rule is expected to increase USD supply in the official exchange market and support the peso amid market expectations of a significant devaluation under President-elect Milei. Despite indications of maintained currency controls and delayed plans to eliminate the peso, the current level of the Argentine currency is widely viewed as unsustainable, with expectations of a 27% drop in the peso on Milei’s inauguration day.