Argentina's Central Bank on Friday hiked its benchmark interest rate to 40% to support the peso, the third such hike in just over a week and one day after the currency plunged in value. Following the decision, the peso -- which has lost more than 10% of its value in the past month -- opened 6% higher against the dollar.
Argentina’s central bank raised its benchmark interest rate by 300 basis points to 33.25% percent on Thursday, but the second steep rate increase in less than a week failed to stop the country’s peso currency from swooning to a record low. The local currency tumbled 7.83% to 23 per U.S. dollar. It had hit 21.2 to the greenback on Wednesday, the first trading day due to a holiday after the bank hiked the rate to 30.25% from 27.25% on Friday.
Argentina’s peso currency closed down 3.11% on Wednesday at an all-time low of 21.2 per U.S. dollar, even as the central bank continued selling dollars to try to halt the slide of the local currency, traders said. The currency’s sustained weakening showed a lack of investor confidence in Latin America’s third largest economy, which is blighted by one of the world’s highest inflation rates.
Pope Francis sent an audio message for the 41st anniversary of the “Madres de Plaza de Mayo” (Mothers of Plaza de Mayo), who protested against the disappearance of their children during the Dirty War (1976-1983) of Argentina’s military dictatorship.
Argentina has created the Antarctica Joint Command, which will operate under the orbit of the Ministry of Defense and be responsible for conducting operations in Antarctica, and areas of interest, in a continuous and permanent way.
Brazilian former president Dilma Rousseff will be joining May first Labor Day activities in Argentina, and participate of a special ceremony at the Argentine unions federation umbrella organization, CGT.
A man and his teenage son died with electrocution during a storm that struck Buenos Aires City and the metropolitan area on Sunday dawn and morning. Winds blowing at over 130 kilometers and massive rainfall, 120 millimeters, caused the collapse of roofs and publicity billboards, trees and lamp posts were knocked down, plus extensive flooding and power cuts that affected thousands of clients. An estimated 2.500 people had to be evacuated and even more had to abandon their homes.
Argentina's central bank surprised markets at the end of the week by jolting its key interest rate up to 30.25% from 27.25%, citing weakness of the local peso against the US dollar and vowing to act again if high inflation persists.
British ambassador in Buenos Aires Mark Kent underlined how much Argentine/UK relations have advanced lately and in a brief speech mentioned football, artificial intelligence and Falklands/Malvinas, areas in which so much is shared by the two countries and how good will and humanitarian values can bring people together and overcome minor interests.
Argentina announced it received 32 bids for six road projects requiring around US$ 8 billion in investment, in a big test of how public-private partnerships (PPPs) can help cash-starved Latin American governments beef up infrastructure.