Argentina peso slides after record loan with IMF

Argentina peso slides after record loan with IMF | iNFOnews.ca
Argentina's President Mauricio Macri speaks from the government house in Buenos Aires, Argentina Thursday, Sept. 27, 2018. Argentina has been hit by a severe drought, one of the world's highest inflation rates and a sharp depreciation of its currency, which has lost more than half its value against the dollar so far this year. That has forced the government to reach out to the IMF for help. (AP Photo/Natacha Pisarenko)

BUENOS AIRES, Argentina – The Argentine peso has slipped a day after the government reached a new loan agreement with the International Monetary Fund.

The increased $57. 1 billion loan announced by the IMF on Wednesday seeks to ease concerns of international investors over Argentina’s ability to meet its debts amid the country’s economic troubles.

Argentina has been hit by a sharp depreciation of the peso amid double-digit inflation, with the currency losing more than half of its value this year. The peso dipped Thursday, to close at 40.60 per U.S. dollar.

Investors worry that monetary policy conditions imposed under the deal could cause more volatility to Argentina’s weak economy.

President Mauricio Macri said at a news conference that there are “tough months ahead” but he is convinced that “this is the only way.”

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Abbey Westbury

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