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Peso To Be Devalued To 800 Pesos/USD

ARS

Headlines have crossed that Argentina will devalue the exchange rate to 800 peso/dollar (Rtrs/BBG). The official closing level for Tuesday was 366.5, but reported parallel FX markets quote the peso much weaker, at around 1000 pesos/USD (BBG). Hence there is already some speculation this won't be the last devaluation for the FX rate.

  • Other focus points from Economic Minister Caputo were focused on the fiscal side. Discretionary transfers to the provinces will be reduced (RTRS). Energy and transport subsides will also be reduced, while new public works will not be auctioned (RTRS).
  • Export taxes will be eliminated, but Caputo also noted the inflation situation will be worse in the near term (RTRS). See this BBG link for more details.

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