Inflation-ravaged Argentina takes new crisis measures, devalues the peso and sets its key interest rate at 118 percent.
The short version
The South American country has been plagued by major economic problems for several years, not the least of which is high inflation.
The country is set to enter its sixth year of economic downturn in the past ten years, while inflation has topped 100 percent.
Argentina also suffers from its national dollar debt.
Now the central bank is taking new measures to face the crisis. The local currency, the peso, will be devalued devalued To list, type the value of (the country’s currency) in relation to other currencies. Source: Norwegian academic dictionaryAnd the key interest rate set at 118 percent, he writes bloomberg.
The peso was fixed at 350 per dollar, a reduction of 18 percent.
For several years, President Alberto Fernandez and the government have tried to avoid devaluation, a move linked to fears of further inflation and political uncertainty.
In May, the key interest rate was set at 97 percent.
Triple-digit inflation in Argentina: – It’s unbearable
The outer right goes forward
In the fall, there are presidential elections in Argentina. In the weekend’s primary, voters punished the nation’s two largest parties.
The primaries are seen as an important indicator of the situation ahead of the elections in Argentina, which will take place in October.
‘A disaster from start to finish’
Economist Javier Milli, who has been referred to as the far-right candidate, surprisingly won. He wants to introduce the dollar as currency in Argentina, which Ecuador and El Salvador have done as well.
Milley is now sailing forward as the favorite ahead of the Oct. 22 election. Polls have suggested his support is around 20 percent, write The New York Times.
After the primaries, the dollar price of Argentine government bonds fell sharply, which is associated with increased market uncertainty. Lower bond prices also increase borrowing costs.
Argentina takes crisis measures: raises the interest rate to 97 percent
– We killed
Argentina is the third largest economy in Latin America. It is now believed that more than 50 percent of the population lives in poverty, according to the Observatorio de la Deuda Social of the Universidad Católica.
– Inflation is killing us, and the uncertainty surrounding jobs does not allow you to plan your life, Adriana Alonso, a 42-year-old housewife, tells the news agency Reuters.
He was E24 in Argentina earlier this year and wrote about spiraling inflation and a serious economic crisis.
– It’s unbearable. Rosanna Morengo, a 27-year-old single mother, told E24 that the government is not doing enough to tackle inflation.
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