Date: 8 months ago   Category: Financial

Argentina has raised a key interest rate to record level


This unprecedented decision has been made in response to sharp devaluation of national currency peso which since the beginning of 2018 has lost 54% of the cost. The Central Bank of Argentina has raised a seven-day rate from 45% to 60%. Today is the highest level in the world. This unprecedented decision has been made in response to sharp devaluation of national currency peso which since the beginning of 2018 has lost 54% of the cost. For one dollar on Thursday evening gave 42 peso. The decision of the Central Bank was preceded by a televised address the president of the country Mauricio Macri who has urged the International Monetary Fund to accelerate allocation of the next credit tranche within the credit line coordinated in June with the IMF of 50 billion dollars. According to the head of state, earlier granting means is necessary in order that "to guarantee execution of the financial program the next year". This statement of the president Macri has been regarded by observers as recognition of existence of real threat of the next default in Argentina. The Minister of Finance of Argentina Nicholas Dukhovny declared on August 31 that next Monday the government will present a package of the economic measures designed to stop depreciation of peso. Besides, the head of financial department plans to go to Washington for negotiations with experts of the IMF. The Argentina Central Bank has already sold 500 million dollars from the reserves. In the nearest future sale still approximately of the same sum is expected. Argentina – one of the countries of Latin America which are most developed economically since 2000 already endured a default twice. We will remind, at the beginning of June Argentina and the IMF have agreed about allocation to the country of the credit of 50 billion dollars within three years. Conditions of granting the credit of stand-by assumed that in 2019 inflation in the country will make 17%, in 2020 – 13%, and in 2021 – 9%. Source: The Russian service Deutsche Welle of News from the Correspondent.netv of Telegram. Subscribe for our https://t.me/korrespondentnet channel

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