Peso crisis highlights fragility of Argentina's economy

ArticleChange of moneyMay 21, 2018 - 6:04:19 AM

Buenos Aires (AFP) - Argentina appears to have resolved, at least in the short term, the crisis over the peso and its depreciation by taking drastic action -- but analysts warn the policy is untenable over time.

To sustain the Argentinian peso, the Central Bank raised its benchmark interest rate up to 40 percent and injected more than $10 billion into the economy.

A crisis of confidence in the peso saw it plunge nearly 20 percent over six weeks as investors concerned by Argentina's high inflation yielded to the lure of a strong dollar...

Source:yahoo.com

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