Argentina Peso Collapses 30% To Record Low After Election Shock


IMF to hold weekend meetings in Argentina with advisers for Macri, Fernandez

The International Monetary Fund said on Friday that a team will meet with the economic advisers to Argentina’s main presidential contenders, incumbent Mauricio Macri and opposition candidate Alberto Fernandez, to “exchange views.”

The “technical staff team” is due to arrive in Argentina on Saturday, the IMF said in a statement, and will discuss the “recent economic and financial developments” and the “government’s policy plans.”

“We will have work meetings both Saturday and Sunday,” a Treasury Ministry source confirmed to Reuters, adding that it would be the first meeting with the IMF for Argentina’s new Treasury Minister Hernan Lacunza, who was sworn in on Tuesday. Fernandez’s economic advisers met with Lacunza earlier in the week, telling him Fernandez would seek an “alternative economic model” to the current administration’s policies.

Argentina has a $57 billion (46.43 billion pounds) standby agreement with the IMF, negotiated in 2018 by pro-reform Macri.

Fernandez’s landslide support in the primary vote prompted the peso currency to fall by nearly 18% last week amid fears of a return to the interventionist economic policies of former President Cristina Fernandez de Kirchner, who is Fernandez’s vice presidential candidate.

The International Monetary Fund’s next scheduled review of the country’s lending programme is on Sept. 15.

In its previous review of Argentina in July, the IMF warned there were “elevated” risks to the programme, with peso weakness and political uncertainty likely to feed on each other.

Source Thomson Reuters