Argentine president Alberto Fernandez revealed to media accredited at Government House, Casa Rosada, that in the coming days an IMF mission is scheduled to arrive in Buenos Aires to address economic issues.
Argentina’s central bank is setting a price floor under the volatile peso in hopes to avoid a sharp plunge in the currency after an opposition-won presidential election last Sunday shifted the country firmly back to the left.
Rating agency Fitch said on Thursday that Argentina’s weak credit fundamentals, in terms of both liquidity and solvency, limit the scope for a debt exchange that minimizes losses for investors beyond maturity extensions.
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.
The International Monetary Fund will stand by Argentina as it works through its economic crisis, Managing Director Kristalina Georgieva said on Thursday. She added that the Fund was waiting to see the future policy framework adopted by Argentina, which holds an election later this month in which a change of government is widely predicted.
By Andrés Bello (*) - Argentine President Mauricio Macri seems almost certain to lose his country’s presidential election next month, after committing the same kinds of economic policy mistakes that so many of his Peronist predecessors made. It is a tragic and catastrophically disappointing denouement.
Argentine President Mauricio Macri met with his International Monetary Fund backers in New York on Tuesday, but there was little light shed on whether the body was likely to approve a key US$ 5.4 billion tranche of funds to the indebted country.
Argentina’s battered bonds were driven still lower on Friday after a credit rating cut from Standard & Poor’s triggered automatic selling mechanisms at big pension funds. Risk spreads blew out to levels not seen since 2005 while the local peso currency extended its year-to-date slide to 36%, forcing renewed central bank market intervention and intensifying worries about Argentina’s ability to honor its dollar-denominated debt.
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.
Argentina's central bank on Tuesday exceeded for the first time a guideline on reserve sales agreed as part of its US$ 57 billion standby agreement with the International Monetary Fund, selling US$ 302 million in the foreign exchange market, traders said.