Argentina Saving Its Economy With IMF's Help

Forex News

Argentina President Mauricio Macri announced that his government asked the IMF to give it a forward release of funds from the country's standby financing deal worth USD 50B. The request was a move to stabilize a volatile market as this year Argentine peso dropped 0.79%. The currency might not meet its dollar debt obligation next year.

The other problem is rising inflation, a weak economy and fallout from a global selloff in emerging markets. Argentina may have problems meeting its dollar debt obligation in 2019. President Macri said: "We have agreed with the International Monetary Fund to advance all the necessary funds to guarantee compliance with the financial program next year," and: "This decision aims to eliminate any uncertainty."

Yesterday, Argentina's central bank sold a total of USD 200M of its reserves in two currency auctions after its peso dropped to fresh minimums at 31.50 per dollar. In 2018, the Bank sold USD 12.881B in the foreign exchange market. The government sees Argentine economy contracting 1% in 2018 and rising around 1.5% of higher in 2019.