LONDON/BUENOS AIRES: Argentina’s government allowed the peso currency to plunge over 50 percent to 801 per dollar on Wednesday as markets cautiously welcomed the first details of President Javier Milei’s plans to shock Argentina’s beleaguered economy back on track.
The libertarian president’s administration swept to office with promises of drastic economic reforms to tackle negative net foreign currency reserves, entrenched capital controls, inflation racing towards 200% and years of economic stagnation.
The rapid devaluation is part a raft of measures announced late on Tuesday by new Economy Minister Luis Caputo, which also include slashing energy subsidies, cutting down the size of government and halting public works tenders in an attempt to cut the deficit to zero.
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