MercoPress. South Atlantic News Agency

First day for Duhalde.

Contrary to most pessimistic prospects, the Argentine peso floating freely against the US dollar for the first time in eleven years managed to remain within government targets after an early demand thrust.

Although government refused to comment if the Argentine Central Bank had intervened, and if so to what extent, the lack of local currency, plus the opening of export operations apparently helped to relieve local financial institutions where hundreds queued since early morning to buy or sell foreign currency. In black market operations the US dollar last week was selling at just above two pesos, and this Monday closed almost flat, after having reached 2,50 at mid day. The day's balance therefore seems favourable to the Eduardo Duhalde administration that has been exposed to constant protests from depositors who had their US dollars accounts forcibly frozen and converted into Argentine pesos at an official exchange rate of 1,40. However, this is just the beginning since the Duhalde administration has to convince Congress to approve a draconian budget (by Argentine standards), which is resisted by many cash strapped provinces, plus comply with the international financial community suggestions who are demanding a sustainable, long term economic program. With this mind and his best of abilities Economy Minister Jorge Remes Lenicov is scheduled to meet this week in Washington with International Monetary Fund, World Bank officials and US Treasury Secretary representatives Paul O'Neill. However even with greater Congressional support than its immediate predecessors, the Duhalde administration must give evidence it has recovered fiscal solvency, international credibility, and has turned the economy competitive after almost four years or recession with the Argentine peso tied to the US dollar, and ever growing budget deficit.