The argentine peso continued its free fall on Friday, exceeding the 24 pesos to a dollar in mid-day, while the country has initiated discussions with the IMF to obtain a financial help (Photo by EITAN ABRAMOVICH. AFP)
The argentine peso continued its free fall on Friday, exceeding the 24 pesos to a dollar in mid-day, while the country has initiated discussions with the IMF to obtain financial aid.
More than three hours after the opening of the markets, the dollar was trading at 24,24 pesos, representing 4.21% more than at the close Thursday.
The president of center-right Mauricio Macri, has received Friday, the minister of Economy Nicolas Dujovne, just returned from Washington, where he has started conversations with the international monetary Fund (IMF) for aid, the amount of which is not yet known.
The director general of the IMF, Christine Lagarde, has assured Thursday that it supported the economic reforms in Argentina and that it hoped to reach early agreement on a programme for the support of the IMF, after meeting with Mr. Dujovne, Washington, dc.
“The minister and I are agreed on the fact that our common goal was to expeditiously conclude these discussions,” she said, confirming that the argentine authorities had made a request for a “confirmation agreement” (or Stand-By agreement).
The argentine president has convened his government to a meeting on Friday afternoon, according to government sources, but no official announcement has been made about this subject.
Mauricio Macri had announced on Tuesday that it requested the financial assistance of the IMF to counter the turmoil on the markets which have reduced the peso of more than 7% in a day, making us fear a new crisis.
17 years ago, in 2001, Argentina had been shaken by the worst financial crisis in its history, which was to fall successively four presidents in ten days, and led the country in default of payment, a true national trauma.
In 2006, the country had repaid its debt to the IMF, to $ 9.6 billion. But he was then suspended for ten years, the missions of the IMF in Argentina.
At the end of 2015, with the arrival in power of president Macri, pro-markets, Argentina was returned to a floating exchange rate, after years of strict control under the government of Cristina Kirchner (center left), who surévaluait artificially the peso against the dollar.
Started again in 2017 on the path of growth, Argentina had hoped this year to contain inflation to 15%, but the devaluation risk, boosting the rise in prices, while the peso has shrunk by 10% against the dollar in over a month.