After losing against the dollar for consecutive two days, the Argentinian peso has now emerged as strong once again.
This result has come in effect last night after the country’s President decided to ask International Monetary Funds for $50 billion.
The peso opened up higher this Friday after shedding 20 percent against the U.S. dollar in earlier two days. On Thursday, the peso fell down to 39.25 per dollar that created a low record. But on early Friday, the trade went high to 38.3 pesos against the dollar.
The government of Argentina is trying very hard to restore the value of their falling currency.
The Central Bank, on Thursday, has imposed interest from 45 to 60 percent unexpectedly due to the risk of greater inflation and exchange rates situation. This is the fifth time since April that the bank has raised rates.
The weakening in currency has been prompted by the drought that resulted in poor farm exports and also increased petrol rates added fuel to it. Due to these factors, the investors pulled back their funds from the market. The investors are also worried about Bueno Airs who is struggling hard to pay off their heavy borrowings.
It all has come in effect after the decision of the President to seek a loan of $50 billion from IMF (International Monetary Funds), this Wednesday.
On Monday, the government will announce a fresh package about cuts regarding its spendings. The government is now looking to amend their economic plans to insulate Argentina against financial crises.
The countries like Brazil, Turkey, and even Argentina is now feeling the damage caused by tighter monetary policies of the U.S. Federal system.
Now, the government of Argentina is looking for ways to keep their currency strong and control the inflation rates. As the inflation rate has reached to 3.21 percent this July.