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Government To Implement Measures To Ease FX Pressure

ARGENTINA
  • Argentina announced that they will implement measures forcing its state-run institutions to sell debt denominated in dollars to the private sector, a complex measure aimed at easing pressure on the official exchange rate and preserving the central bank’s cash reserves, according to Economy Ministry officials.
    • The government will issue two decrees to execute the change. The first will force public sector institutions to sell dollar debt to the market under local Argentine law through a schedule that policy makers will establish.
    • The second will mandate the same institutions swap their global bonds controlled under New York law for bonds in pesos.
  • By eliminating the public sector’s dollar debt burden and offering dollar instruments to private investors, the move is aimed at relieving short-term pressure on the official exchange rate and preserving the central bank’s dwindling cash reserves.
  • Latest: *ARGENTINA DOLLAR BONDS DUE 2030 FALL 1.4C TO 27C ON THE DOLLAR (BBG)

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