Argentina’s economy minister outlined on Saturday a plan to stop expanding the monetary base in an effort to combat inflation. The following day he announced a $1.5 billion purchase from the central bank to pay bond interest due in January.
The peso extended its gains to 6.01% at 1,415 pesos per dollar, after strengthening around 2% in early trading.
The gap between the black market “blue” exchange rate and the official rate narrowed slightly, and stood at 53%, after hitting some 60% last week.
“The announced measures can be taken as a positive, only if the gap falls significantly in the coming days and inflation plummets in the coming months,” said local settlement and clearing agent Neix.
The benchmark Merval plummeted over 12% while over-the-counter bonds fell 3%.
Source: Economy - investing.com
