Moscow. December 18. Cancellation by the authorities of Argentina restrictions on the exchange of the national currency, introduced in 2011, led to an almost 30% drop in the rate of the Argentine peso against the U.S. dollar on Thursday.
As reported by Bloomberg, for the close of the market rate was 13.4 pesos per $1, dropping to 27% compared to the previous day. During the session he dropped to 13,95 pesos for $1. The devaluation of the peso on Thursday became the most significant over the past 14 years.
The new President of Argentina, Mauricio Macri, promised during the campaign to lift restrictions on the exchange of the national currency, has fulfilled its promise, releasing the peso to float freely since Thursday.
Such a measure, he said, is a key part of the reforms needed to attract investment into the country, which could revive the economy suffering from sluggish growth, close to 25% inflation and shortages of foreign currency.
Previously, the Argentines had the official right to exchange no more than $2 thousand per month and should have received a document showing where he was exchanged. The country has two exchange rates: official (of 9.8 pesos/$1 at the end of trading on Wednesday) and the exchange on the black market (15 pesos/$1). The new rules introduce a single rate that is as a result of devaluation, close to the “black” course.
The devaluation of the peso carries certain risks, in particular, may increase inflation and cause a negative reaction in the society due to the reduction of savings in terms of dollars, experts say.
The Minister of Finance of Argentina, Alfonso Prat-gay said earlier that the country’s Central Bank is ready to conduct intervention in the foreign exchange market if the peso gets out of control.
Argentina expects to attract $15 billion to $25 billion in the next month to support its foreign exchange reserves.
The government signed an agreement with the local exporters of agricultural crops, which will allow him to the end of the current year to replenish foreign exchange reserves to $2.4 billion on Monday, the authorities abolished export duties on grain, including wheat and corn, and reduced the duty on soybean exports by 5 percentage points.
Argentine farmers since the beginning of this year exported crops worth $18 billion, the lowest level since 2009. Thanks to a new agreement with the government of the exporters intend to dramatically increase foreign deliveries, hoping that in the next three weeks will be able daily to send to the export of grain worth $400 million.
The total volume of grain exports this year will reach $20.4 billion, predicts the group of exporters.
The Argentine government also intends to convert a portion of funds under the currency swap with China for the equivalent of $3.1 billion in Addition, the authorities are negotiating with banks wall street the loans totaling about $10 billion.
