ARS Declines Even After Argentine Election
The Central Bank of the Republic of Argentina attempted to reduce the decline in federal reserves last week. Despite this, ARS still scrambles to recover.
Right before the announcement of the Argentine election results, the currency slid down 7.6% to 7.5 per US dollar in the black market. The losses last week went to almost 14% at its close.
Before they showed the results on the Argentine election, investors pushed the currency down a staggering 7.6% to 7.5 per US dollar on the black market. Last week’s losses went to almost 14% at its close.
The bank said it would limit dollar purchases to $200 per month via bank account and just $100 in cash.
Amid the UK and Argentina’s 10-week war in the Falklands, the GBP/ARS exchange shifted up 0.02% at 76.8478.
Today, the USD/ARS pair keeps flat at 59.9250.
ARS inched back up from its 0.03% decline against USD to 59.99 yesterday, reaching back to a flat 59.9250. The currency weakened by 24.1% over 11 weeks.
Fernandez Elected to Fix Macri’s Mistakes
Due to continuous market swoons, Alberto Fernandez unseated the now former President Mauricio Macri. The former president promised to kickstart the Argentine economy, but his free-market policies failed to deliver.
Former President Macri attempted to implement capital controls, but the cut off was at $10,000.
Currency purchases multiplied at the worries brought by the elections last week. As a result, the central bank’s reserve sank $2.2 billion.
Total reserves stand at $43.5 billion today. Argentina’s bonds are at about ¢40 ARS on the dollar.
Analysts worry about the government’s involvement under Fernandez’s administration. They claimed President Fernandez would not have much room to move.
Fernandez said his initial goals are to attack poverty, hunger, as well as slowing down inflation. Reports claim he will announce more strict capital controls this year.