Argentina Limits Banks’ Dollar Holdings as Devaluation Looms (1)

Argentina’s central bank limited the amount of foreign currency the nation’s commercial lenders can hold, in a push to discourage US dollar hoarding ahead of an expected devaluation by President-elect Javier Milei after his Sunday inauguration.

The country’s central bank said that holdings may not be greater than the lowest amount recorded between Oct. 12 and Dec. 6, according to a rule published on its website Thursday. The measure — announced on the last business day of the current administration — goes into effect immediately and is valid until the end of the year.

A Banco de Comercio branch in Buenos Aires. Argentina is bracing for a currency devaluation after Javier Milei’s inauguration as president on Dec. 10.

Photographer: Erica Canepa/Bloomberg

The new rule would force ...