Argentine markets held steady on Wednesday, even as thousands of protesters took to the streets to demonstrate against the government of President Mauricio Macri and a darkening economic outlook in the recession-hit South American country.
Argentina will not allow a chaotic fall in the peso and will use its dollar reserves to bolster the currency against political uncertainty that has swept the country since the Aug. 11 primary election, Treasury Minister Hernan Lacunza said on Wednesday.
Argentina could be downgraded again by Fitch Ratings if further weakness in the Peso boosts the risk of default, the agency’s head of sovereign ratings said in an interview. Argentina has issued billions of dollars worth of bonds denominated in U.S. currency.
Argentina's new finance minister made stabilizing the country's battered currency his top priority on Tuesday, while still pledging to meet commitments made to the International Monetary Fund, which is sending a team to Buenos Aires.
Opposition candidate, Alberto Fernandez, said that Argentina would struggle under present conditions to repay a loan to the International Monetary Fund and he would seek to renegotiate the repayment terms, according to an interview published on Sunday by the newspaper Clarin.
Argentine markets bucked the dismal three-day losing streak on Thursday, amid signs of political compromise and a new central bank measure to prop up the embattled currency.
Argentine President Mauricio Macri, trying to recover from a bruising primary election loss, announced on Thursday an end to sales taxes on basic food products until the end of the year in a bid to salvage his re-election prospects and end an economic crisis.
Argentine President Mauricio Macri on Wednesday unveiled a package of welfare subsidies and tax cuts for lower-income workers to lessen the impact of an economic crisis just months before a re-election bid, but his announcement did not halt the peso currency's collapse.
Argentina's peso slipped further against the dollar Tuesday while the stock market partially recovered as South America's third-largest economy continued to take a pummeling in the wake of pro-business President Mauricio Macri's crushing defeat in party primaries.
Argentina’s peso fell 1.8% on Monday to 45.49 per U.S. dollar due to uncertainty over the country’s presidential election and the fallout from U.S.-China trade tensions, traders said.