Opponents of Argentina's President Mauricio Macri launched a 24-hour strike on Wednesday to protest the government's inability to reduce inflation that has reached 55% over the past year. The strike paralyzed public transport while all flights to and from the country's airports were canceled. Banks, schools and universities remained closed.
Argentina's beleaguered industrial activity fell 10.3% in April due to the peso's devaluation coupled with rampant inflation, the Argentine Confederation of the Medium-Size Company (CAME) reported over the weekend.
Mauricio Macri's original plan was to address Argentina’s citizens on television on the final working day before the Easter break. But he opted for a folksier way of presenting an economic package that he hopes will rescue his chances of being re-elected president in October. He appeared in a taped video, knocking on the door of a house belonging to a young working-class couple, then sitting down with them to explain his plan.
Economic activity in Argentina fell 4.0% in October versus the same month last year, the government said on Thursday, marking the seventh straight month of declines as the country grapples with recession and high inflation.
The US dollar rose 22 cents against the Argentine peso and closed at a 1 US$/ AR$37.50 parity on Thursday. It was the second day in a row for an upward trend following seven straight slumps.
Argentina says that consumer prices rose 6.5% in September bringing the twelve month inflation rate to 40.5%, one of the world's highest. The inflation rate published by the official statistics agency Indec, on Wednesday follows a sharp devaluation of Argentina's currency. The nine month rate reached 32.4%.
Argentina’s central bank said on Thursday it hiked reserve requirements by 3 percentage points for the country’s largest banks, as it tries to keep its plan for reducing short-term debt from adding to already high inflation.
Argentina's President Mauricio Macri is acknowledging for the first time that the country's annual inflation rate will be 30%. Macri said Tuesday that the high consumer prices unfortunately are a product of this storm. He was referring to a sharp devaluation of Argentina's currency and a recent run on the Peso.
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.