Surprising electoral result in Argentina shook the markets: the peso was devalued again

After the shocking results of the primary elections in Argentina, the markets turned around. The Central Bank of Argentina has decided to devalue the peso once again.

After politician Javier Milei, who vowed to shut down the Central Bank and said they would use the US dollar as currency, won the primary election over the weekend, drastic measures were taken to ease markets after his assets went into disrepair yesterday. freefall.

STRONG MEASURES HAVE BEEN TAKEN

The Argentine peso fell 14 percent to record lows before recovering in parallel markets. Inflation in the country is also at the level of 115 percent.

After the movement in the markets, the dollar/peso price, which on Friday was at 287, rose to 350. It was also known that the Central Bank will increase the policy rate from the current 97 percent to 118 percent. On the other hand, the Central Bank of Argentina continued to deplete reserves to support the peso in the exchange market.

ARGENTINA IS AGAIN AT THE DOOR OF THE IMF

A senior Argentine government official said the country intends to ask the International Monetary Fund (IMF) to increase a payment scheduled for the end of this month by an unspecified amount.

The IMF has agreed to lend Argentina up to $10.8 billion for the rest of the year as part of a refinancing deal brokered by Economy Minister Sergio Massa, who is also running for president in the Oct. 22 election. The first payment of $7.5 billion is expected by the end of August.