Argentina raised its key rate to a record low

Аргентина повысила ключевую ставку до рекордного уровня

This unprecedented decision was taken in response to the sharp depreciation of the national currency, the peso, which from the beginning of 2018 has lost 54% of its value.

The Central Bank of Argentina raised the seven-day rate from 45% to 60%. Today is the world’s highest level.

This unprecedented decision was taken in response to the sharp depreciation of the national currency, the peso, which from the beginning of 2018 has lost 54% of its value. For one dollar on Thursday evening gave 42 pesos.

The Central Bank’s decision was preceded by a televised speech, President Mauricio Macri, who urged the international monetary Fund to accelerate the disbursement of the next tranche under the agreed in June with the IMF credit line in the amount of 50 billion dollars.

According to the head of the state, the earlier provision of funds necessary in order to “guarantee the fulfillment of the financial program for the next year.” This statement of the President, Macri was seen by observers as a recognition of the existence of a real threat of another default in Argentina.

The Minister of Finance of Argentina Nicolas Duchovny announced on 31 August that next Monday the government will present a package of economic measures designed to stop the decline of the peso. In addition, the head of financial Department plans to go to Washington for talks with IMF experts.

The Argentine Central Bank has sold $ 500 million of its reserves. In the near future is expected to sell approximately the same amount.

Argentina is one of the most economically developed countries in Latin America since 2000, it has twice experienced a default.

Recall that in early June, Argentina and the IMF agreed to disbursal of a loan in the amount of $ 50 billion within three years. The terms of the credit stand-by assumed that in 2019 the inflation rate will be 17% in 2020 – 13%, and in 2021 9%.

Source: Russian service of Deutsche Welle

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