Argentine Peso Collapses 9% to All Time Low As Crisis Deepens

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ClemSnide
Participant

Like most of these stories it is just a matter of kicking the can down the curb and bankers getting whatever they can before its all over.

Argentina’s peso fell over 4 percent to close at 42.5 pesos per dollar on Thursday more challenges for President Mauricio Macri ahead of elections in October.

The peso has lost over 11 percent in 2019, renewing fears after a sharp sell-off in 2018 saw the Argentine currency lose around half its value against the dollar.

The currency remains within the limits of a non-intervention trading band agreed with the International Monetary Fund (IMF) as part of a $56.3 billion deal last year. The upper limit of that band was 50.199 pesos per dollar on Thursday.

The record low stands in marked contrast to January and February when the central bank spent just shy of a billion dollars trying to weaken the peso when it strengthened outside the limit of the band.

Argentina’s inflation is out of control and a central bank poll of economists increased their 2019 inflation forecast to 31.9 percent.

Goldman Sachs see 48 pesos per dollar by the end of the year thye said in a note on Wednesday

Other Latin American currencies also fell on Thursday against a stronger dollar, which hit a near three-week peak against some currencies.