Argentina Sharply Raised Key Rate After Peso Collapse


The Central Bank of Argentina raised the key rate by 15 percentage points to 60% per annum after the sharpest collapse of the peso to the dollar since 2015, when a floating rate was introduced. On Thursday, the peso, which lost 7% on the eve, fell another 15% to 40 pesos per dollar in preliminary bidding, the Financial Times wrote.

Back in April, the US dollar cost only 20 Argentine pesos. The dynamics of this South American currency this year was the worst in the world, the FT notes.

The day before, Argentine President Mauricio Macri asked the IMF to accelerate the provision of a $ 50 billion stabilization loan agreed in June.

The fall of the peso has threatened Argentina’s ability to service debts, most of which are denominated in dollars. The country only a few years ago returned to the international capital market after settling disputes with investment funds seeking payment after the country’s massive default in 2001.

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