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U.S. dollar rises in Argentina after deal with IMF

Xinhua Financein BUENOS AIRES
2018-06-09 21:06

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After the Argentinean government struck a deal with the IMF, the U.S. dollar rose 50 cents against the peso on Friday to reach 26.01 pesos, according to the Central Bank of Argentina (BCRA).

On Thursday, the IMF and Argentina announced that Buenos Aires was granted a credit line of 50 billion U.S. dollars. This led the dollar to top the 25 pesos limit set by the BCRA.

As part of the deal struck with the IMF, the BCRA is no longer participating in the exchange market, although it is still offering 5 billion U.S. dollars at 25 pesos per unit on the financial market.

Other conditions placed by the IMF on Argentina in exchange for the credit line include preventing the central bank from further monetizing the country's deficit.

With the U.S. dollar now standing at 26.01 pesos, it has reached a historic high despite the Argentinean government saying in May that the exchange rate turbulence, which saw the peso tumble by 21 percent, had been "overcome."
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