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Montevideo, September 20th 2018 - 08:58 UTC

US dollar hits a new record in Argentina despite auctioning US$ 200 million

Wednesday, August 29th 2018 - 08:48 UTC
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The Argentine peso has weakened 40.79% in 2018 and minister Dujovne has admitted that the economy is expected to contract 1% this year The Argentine peso has weakened 40.79% in 2018 and minister Dujovne has admitted that the economy is expected to contract 1% this year
Central bank data shows it has sold a total US$ 12.881 billion in the foreign exchange market this year as monetary policymakers try to stabilize the currency Central bank data shows it has sold a total US$ 12.881 billion in the foreign exchange market this year as monetary policymakers try to stabilize the currency

Argentina’s central bank auctioned a total of US$ 200 million of its reserves in two separate currency auctions on Tuesday after the peso hit new lows, the monetary authority said in a statement.

The peso weakened to a record close of 31.50 per dollar after touching an all-time low of 32.00 to the greenback earlier in the day. The bank offered US$ 300 million in each auction.

The peso has weakened 40.79% in 2018. Data published by the central bank shows it has sold a total US$ 12.881 billion in the foreign exchange market this year as monetary policymakers try to stabilize the currency.

Argentina’s economy is expected to contract 1% in 2018, but grow by at least 1.5% next year, Economy Minister Nicolas Dujovne said on Monday.

Likewise the stock market index Merval was down 1.6%, to its lowest nominal level in eleven months.

“The problem has a name, confidence, you feel it or not, but there's no shopping for stocks”, said economist and ex Finance minister Guillermo Nielsen. Investors are fearful of the performance of the Argentine economy, inflation, possible recession and another hike of the US dollar.

Categories: Economy, Argentina.

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  • chronic

    Reeeeeeeeeeeeeeeeekie:

    Capitalism - to the extent that it could ever be instituted - might not function all that well in rg given the rg's aversion to productivity.

    Communism has never worked anywhere.

    Aug 31st, 2018 - 12:57 pm 0
  • Enrique Massot

    Just like the orchestra of the Titanic, Mauricio Macri and his gang continue to smile while Argentina begins to crumble all around them.

    No sooner a taped TV address of Macri to the Argentines ended, the peso began to drop in spite of U$S 300 million auctioned by the central bank.

    Three hours later, the peso had lost 7.5 per cent against the dollar, which ended up reaching an all-time record: 34.50 pesos in sales to the public.

    Not even the hardest opponents to the Macri government anticipated such a quick deterioration of the economy.

    In spite of the obvious failure of the measures it has taken so far, the government does not blink, and keeps the same strategies that have led Argentina to the current fiasco.

    While Nestor Kirchner rescued the Argentine economy and paid off the debt to the IMF in two and a half years, Macri will go down in history as the president who destroyed the same economy in pretty much the same length of time.

    And the world markets, which Macri so much cajoled, will be the unceremonious executioner dealing the final blow to this sorry comedy of errors.

    Aug 30th, 2018 - 02:19 am -1
  • chronic

    Fiddy!

    Aug 30th, 2018 - 12:33 pm -1
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