S&P Global Ratings raised its debt grade for Argentina on Tuesday, acknowledging the agency made a mistake when it changed the rating in late December for the crisis hit country.
Argentina's new government announced the issuance of US$ 1.326 billion of dollar-denominated Treasury Bills, to be directly subscribed by the central bank, according to a decree in the Official Gazette on Thursday.
Argentine president Alberto Fernandez called for “social responsibility” from business people demanding they don't increase prices above reasonable levels, since “fighting inflation is a battle that involves all of us”.
Argentine central bank international reserves stand at US$ 46.885 million following on Monday's rescue of different maturing bonds and support in the local market to help stabilize the price of the US dollar. This demanded some US$ 600 million.
According to estimates among analysts, the Argentine Peso's production will be around $ 300,000 million for the remainder of the year, estimating inflation for 2020 even higher than this year. 80% of that issuance corresponds to the last month of the year, breaking the objective that the Central Bank of Argentina (BCRA) of “zero-emission” had set and jeopardized the exchange control as it works since August.
Argentina's central bank this week announced further currency controls in an effort to tame speculation and stem a spiraling debt crisis in Latin America's third-largest economy.
Argentine gross public debt climbed 3% at the end of the second quarter of the year and has reached US$ 337.367 million compared to US$ 327.166 million in the same period last year, according to the Financial Secretariat.
Argentina’s central bank is talking to the International Monetary Fund about revising its monetary policy target for September, the institution’s president Guido Sandleris told reporters in Buenos Aires on Monday.
The International Monetary Fund said it will stand by Argentina after the government authorized currency controls on Sunday in an about-face by President Mauricio Macri, who had previously lifted many protectionist practices of his predecessor, Cristina Fernandez de Kirchner.
Argentine President Mauricio Macri said that monthly inflation would accelerate to 3% in August following a slump in the peso, as the central bank intervened heavily in the market on Tuesday to prop up the local currency.