Argentina Peso Falls as Government Fails to Ease Market Concerns
- Government says sales will support budget; peso weakens
- IMF to vote on Argentina’s $50 billion credit line on June 20
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Argentina’s announcement that it plans to sell $7.5 billion in the foreign exchange market to help stabilize the peso and support its budget failed to prevent the currency from falling to a new record low on Wednesday.
The peso initially rose after the Finance Ministry said the central bank will conduct daily auctions on behalf of the Treasury to sell the dollars. But gains were short-lived as analysts said the measure was unlikely to provide enough support for Argentina’s economy in the face of high inflation, a widening budget deficit and higher global borrowing costs.