(Reuters) -Argentine Economy Minister Luis Caputo told investors in New York the country plans to repurchase sovereign bonds and begin building foreign reserves, even as the peso trades within its band, Bloomberg News reported on Saturday, citing people with direct knowledge of the matter.
President Javier Milei does not intend to float Argentina’s currency, but will keep it trading within established bands, Caputo said in a meeting with about 40 investors hosted by JPMorgan Chase on Friday, the report
said.
Caputo may accelerate the pace of band adjustments to 1.5% per month, depending on inflation and peso demand, the report said, adding that currently the upper and lower limits of the trading range are adjusted by 1% a month, allowing the peso to gradually weaken.
Caputo plans to present the full proposal within 30 days, which includes a timeline for reserve accumulation, the debt buyback and a debt-for-education bond, the report said.
JP Morgan and Argentina's Economy Ministry did not immediately respond to Reuters' requests for comment outside business hours.
Earlier this month, JPMorgan Chase CEO Jamie Dimon said Argentina may not ultimately need a bank loan, and that Milei is doing a good job overhauling the country's troubled economy.
Milei's party cruised to victory in midterm legislative elections in October as voters handed him a mandate to keep pushing through his overhaul of the economy, which has included deep austerity measures.
(Reporting by Shivani Tanna in Bengaluru; Editing by Kevin Liffey and Alistair Bell)
