BUENOS AIRES, May 14 (Reuters) - Argentina's government announced a package of measures to rein in soaring inflation and support the wobbly peso curre
BUENOS AIRES, May 14 (Reuters) – Argentina’s government
announced a package of measures to rein in soaring inflation and
support the wobbly peso currency on Sunday, including rate
adjustments, more interventions in the exchange market and
expedited deals with creditors.
The measures include an interest rate hike from the
country’s central bank, the economy ministry said in a
statement. The ministry did not elaborate, but an official
source told Reuters the hike would be 600 basis points, bringing
the rate up to 97%.
The South American nation is battling to bring down
inflation that hit 109% on an annual basis in April. It also
faces tumbling confidence in the peso and dwindling foreign
currency reserves that are threatening the government’s
finances.
The central bank will also increase its intervention in the
foreign-exchange market and double down on its currency
devaluation plan, the ministry said.
An agreement with the International Monetary Fund to dole
out funds to the cash-strapped nation will be sped up as well,
the ministry added.
More measures are set to be announced in coming days,
according to the ministry.
President Alberto Fernandez’s government is looking to bring
the country’s economic situation under control as elections
near, with polls showing flagging support for the ruling
Peronist party.
(Reporting by Jorge Otaola and Maximilian Heath in Buenos
Airies
Writing by Adam Jourdan and Kylie Madry
Editing by Matthew Lewis)
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