[1/2] In this illustrated photo taken on October 17, 2022, a 1,000 Argentine peso banknote sits on top of several US$100 notes. Reuters/Agustin Marcarian/Illustration/File Photo
BUENOS AIRES (Reuters) – The Argentinean government on Sunday announced a series of measures to curb inflation and support the volatile peso, including adjusting interest rates, stepping up intervention in the currency market and speeding deals with creditors. announced measures.
In a statement, the economy ministry said the measures would include a rate hike by the central bank. The ministry did not give details, but officials told Reuters the rate hike would be 600 basis points (bp), taking the rate to 97%.
The rate hike is expected to take effect on Monday, the official added.
The South American nation is fighting to contain inflation, which reached 109% a year in April. It also faces declining confidence in the peso and declining foreign exchange reserves that threaten government finances.
The central bank will also step up its intervention in the foreign exchange market and double down on its currency devaluation plan, the ministry said.
The ministry added that an agreement with the International Monetary Fund on funding to cash-strapped countries would also be accelerated.
Further measures will be announced in the coming days, the ministry said.
President Alberto Fernandez’s government is trying to keep the economic situation under control as elections approach, with polls showing weaker support for the ruling Perón party.
Reported by Maximilian Heath.Written by Adam Jordan
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