Argentine Peso Hits New Low

President of Argentina Mauricio Macri

Argentina's central bank on Thursday raised its benchmark interest by 15 percentage points to 60 percent, the highest in the world, after the peso plummeted to a new record low. The crisis left one out of every five Argentines unemployed and plunged millions of people into poverty.

The Argentine peso has lost more than 40% of its value against the U.S. dollar this year and inflation is rampant.

The slide comes after its central bank moved to raise interest rates and President Mauricio Macri and International Monetary Fund chief, Christine Lagarde, agreed to hasten the installments of a $50bn (£38bn) IMF loan.

Macri said that in the past week there have been "expressions of a lack of trust in the markets" about Argentina.

Argentina's Peso suffered its biggest one-day slide in nearly three years on Wednesday after the central bank sold reserves for a second straight day and the president asked the International Monetary Fund for early release of standby funds.

According to Cristine Lagarde, the International Monetary Fund's managing director said in a statement that she is stressing her support for the country's policy efforts and the financial institution's preparedness to help the government in its plans of revision of its policies.

The request underscores the government's need to reassure markets that it has enough money to fund itself through 2019 amid the second recession in two years, inflation near 30 percent and the world's highest borrowing costs. His government has since announced more than $2 billion in budget savings, a process he promised to continue.

Cafe bombing kills separatist leader in eastern Ukraine. Suspects in custody
He and several others, including his press secretary and armed guards, were ambushed while travelling in a rebel-controlled area. In October 2016, a pro-rebel Russian commander, Arsen "Motorola" Pavlov, died in a bomb blast in his apartment building.

Live shots of the Google Pixel 3 has appeared online
However, the publication doesn't have a reliable track record, so these prices should be taken with a pinch of salt. The user mentioned that the device was part of a testing program through a USA carrier other than Verizon.

Tua Tagovailoa doesnt disappoint, Alabama crushes Louisville
Expect Saban to answer this question, however, soon when he decides Tagovailoa is going to be Alabama's starting quarterback. In Taylor's defense, she asked a question that was totally fair, albeit somewhat exhausted .

The "more adverse global market conditions" battering Argentina's economy "had not been fully anticipated", she admitted in a statement.

In the last 40 years, Argentina has lived through at least four serious economic crises.

He said overall doubts of an Argentine default on the loan had been assuaged "only until Macri's term ends (in December next year) but as of 2020, they remain latent".

In return for International Monetary Fund support, the government has committed to reducing its budget deficit to 2.7 percent this year, from 3.9 percent in 2017, and to 1.3 percent of GDP next year.

Ratings agency Moody's said the Central Bank's move was "a clear signal that economic policy approaches have not been sufficient to contain the financial pressures facing Argentina". Twelve-month inflation was clocked at 31.2 percent in July.

The IMF has admitted that their internal audit unit concluded that they failed to provide oversight and they believed too much in the growth and the success of Argentina's economic reforms.

The political fortunes of Macri, who until recently had been expected to easily win re-election late next year, may also be waning. "I understand this, and I resolve on you to know I'm making all decisions needed to guard you", Macri acknowledged.

Related news:

Hot News

isis-killer-beheading-video-story-top Trump renews threat to withdraw USA from NAFTA
Sep 03, 2018 - 18:43
An apparently furious Trump then blasted Bloomberg in a tweet for leaking the quotes , and demanded an apology. The most striking example involves one of the biggest investments Canadians make - buying a vehicle.

isis-killer-beheading-video-story-top JD CEO's arrest steps on governance landmine
Sep 03, 2018 - 17:53
China's foreign ministry said Monday the Chinese Consulate in Chicago is looking into the circumstances surrounding Liu's arrest. Liu wasn't involved, but he unsuccessfully asked the court to hide his name out of concerns for his business and marriage.

isis-killer-beheading-video-story-top British envoy says Myanmar case hurt rule of law
Sep 03, 2018 - 16:58
A court in Myanmar sentenced two journalists to seven years in prison Monday for illegal possession of official documents. Following sentencing Kyaw maintained the pair's innocence, but added that they were unsurprised by the verdict.

isis-killer-beheading-video-story-top Vettel says he's still in it after Monza setback
Sep 03, 2018 - 16:45
I really just appreciate that and respect it so much. "I think everybody has the right to do what they feel like", Raikkonen said. Edd Straw is a former Editor and Editor-in-Chief of Autosport, who has now returned to covering the Formula 1 circus full-time.

isis-killer-beheading-video-story-top PM Imran Khan formally kicks off 'Plant for Pakistan' drive in Haripur
Sep 03, 2018 - 14:40
Iran's chief diplomat also met with Pakistan's Army Chief of Staff Lieutenant General Qamar Javed Bajwa. So I would say positive - anything is better than nothing.

isis-killer-beheading-video-story-top Serena Williams praises Kaepernick for seeking ‘the greater good’ in anthem protests
Sep 03, 2018 - 14:11
She built on the momentum and was dominant in the first set against Kanepi, which she won 6-0 in just 18 minutes. Respect for both what they have done in their careers and to see them play at their age still, keep on going.

isis-killer-beheading-video-story-top Ramaphosa: SA has signed several deals to boost economic ties with China
Sep 03, 2018 - 11:38
By comparison, its first Chinese loan was $620 million over 20 years at 2.85 percent, and it came with a seven-year grace period. A more well-known name would be Huajian, a Chinese shoemaker that produces for brands like GUESS and Calvin Klein.

isis-killer-beheading-video-story-top Rangers beaten by Celtic in Gerrard's first Old Firm derby
Sep 03, 2018 - 11:16
When a rivalry is 130 years old, a plot twist is welcome. "We've beaten them here and over at Ibrox". Steven [Gerrard] has done well getting them organised so we had to be patience.

isis-killer-beheading-video-story-top Manchester United fans excited after Champions League draw
Sep 02, 2018 - 21:51
There is no false bravado in Mauricio Pochettino's men for they have made a terrific start to the 2018/19 Premier League season. Neymar, Kylian Mbappe, Gianluigi Buffon et al will be keen to upset the Reds, who also play Napoli and Red Star Belgrade.

isis-killer-beheading-video-story-top Aaron Rodgers: New deal doesn’t guarantee I’ll finish career with Packers
Sep 02, 2018 - 21:31
Many teams have seen their rosters collapse right before their eyes after paying their franchise quarterback a large sum of money. Entering his 14th season, Rodgers will have the weight of the world on his shoulders due to his new contract.

isis-killer-beheading-video-story-top Meghan Markle health fears: Fans anxious after latest pictures
Sep 02, 2018 - 21:27
The unguarded moment left everyone giggling and had both Meghan and Prince Harry blushing. And - gasp! - she went sans tights.

isis-killer-beheading-video-story-top Former deputy AG: Firing Sessions would harm Trump, nation
Sep 02, 2018 - 20:28
Last week, in an interview with Fox, Trump lashed out at Sessions, saying he failed to take control of the Department of Justice. Trump also recently declined to mention McCain's name at a signing ceremony for a defense bill named after him.

isis-killer-beheading-video-story-top Ozil back for Arsenal after rift talk
Sep 02, 2018 - 20:00
That subsided and the game settled into a pattern of Arsenal dominance. "Some special goals from them, quality goals". His assist for the Aubameyang goal was exquisite and Lacazette's link-up play was excellent all afternoon.

isis-killer-beheading-video-story-top Xiaomi's Poco F1 features Snapdragon 845, costs $300
Sep 02, 2018 - 18:31
Xiaomi has announced four variants of the smartphone in India and they came in with 8GB of RAM and 256GB of inbuilt storage. And during the announcement today, Xiaomi stated that it would be releasing Android 9.0 Pie software update for the phone.

isis-killer-beheading-video-story-top Yankees Reportedly Land Andrew McCutchen From Giants
Sep 02, 2018 - 17:54
The 23-year-old Avelino was hitting a combined.287 with 15 homers, 66 RBIs and 25 steals at Triple-A and Double-A. The Yankees could use another outfielder and have never been shy about bringing in big names.