Argentine President Javier Milei has acknowledged losing investor confidence, as capital continues to flee the country daily. Investors remain concerned that the unpredictable, libertarian president—despite his bold economic reform agenda—may abandon peso defense like many predecessors, allowing the currency to collapse.

During a brief interview on Friday evening, Milei stated: "The market is in panic mode." That day, Argentina's central bank traders injected $678 million into foreign exchange markets, desperately attempting to meet hard currency demand and prevent peso collapse. This brought total intervention over three days to $1.1 billion.

According to economists' best estimates, Argentina's liquid foreign exchange reserves total less than $20 billion, making this intervention scale remarkable for the country. For Milei, presidential stability depends on controlling the chronic inflation that has long plagued Argentinians, making peso stability crucial.

Should the peso collapse, consumer prices would surge again, essentially eliminating hopes for maintaining the public support Milei needs to sustain his reform agenda. On Friday, he pledged to defend the peso at all costs, echoing his chief economic advisor's statement from the previous day: "We will take all necessary measures to protect the quality of life of the Argentine people."