Argentine central bank intervenes to support the US dollar: buys US$ 50m

Wednesday, January 23rd 2019 - 09:14 UTC

Full article 3 comments

The bank has intervened in recent days when the Peso strengthened outside the IMF agreed band, which was at 37.643 to 48.714 per greenback on Tuesday

Argentina’s central bank said it bought US$ 50 million at an average price of 37.597 Pesos per dollar in the foreign exchange market on Tuesday, part of its effort to maintain the currency in a trading band agreed with the International Monetary Fund.

The currency nonetheless appreciated 1.33% after the intervention to 37.50 to the dollar. The bank has intervened in recent days when the Peso strengthened outside the band, which was at 37.643 to 48.714 per greenback on Tuesday.

Hit by jitters about Argentina’s ability to meet its debt obligations, the Peso lost half its value against the dollar last year. The central bank adopted a super-tight monetary policy late last year that boosted the currency.

This month the strengthening Peso started slipping outside the limits of the non-intervention band agreed with the IMF.

Categories: Economy, Argentina.

Tags: Argentina, Argentina Central Bank, Argentine peso, IMF, International Monetary Fund.

Top Comments

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Patrick Edgar
... revealing what the structure of the International Monetary Fund ultimately is designed to do, through the collaboration of its members towards its design performance.
Jan 23rd, 2019 - 02:35 pm 0
Jonaz_BsAs
This is as reporting when a doctor puts a band-aid on a cancer patient. By April/May the peso should be back in free fall modus again.
Jan 24th, 2019 - 05:33 pm 0
Enrique Massot
Nothing surprising for a country that would have hit default a long time ago without help from an IMF and an US government clearly intent in keeping the Macri government on life support so that foreign debt service payments keep flowing out of the country.

As a result, since the IMF is funded by its state members, the move guarantees a constant, juicy stream of public money flowing to private coffers.

And the loop is closed.
Jan 26th, 2019 - 12:27 am 0

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