Argentina Devalues Currency by 50% , as Part of Shock
Economic Measures.
In a televised message on Dec. 12, Argentina's
economy minister, Luis Caputo, said that the
country's peso will lose its value by 50%. .
Instead of 400 pesos amounting to one U.S. dollar,
800 pesos will now compare to one American dollar.
For few months, we're going
to be worse than before, Luis Caputo, Argentina's economy minister, via statement.
If we continue as we are,
we are inevitably heading
towards hyperinflation. Our
mission is to avoid a catastrophe, Luis Caputo, Argentina's economy minister, via statement.
News of the devalued currency comes two days
after Javier Milei was sworn in as president.
Other measures that will be taken include
"cuts to energy and transportation subsidies,"
the cancellation of public works projects and "cutting some state jobs," CBS News reports. .
In addition to suffering 143% yearly inflation,
Argentina has a $43 billion trade deficit and owes
the International Monetary Fund (IMF) $45 billion.
Four out of 10 Argentines are
impoverished, CBS News reports.
Four out of 10 Argentines are
impoverished, CBS News reports.
The IMF commented about Argentina's plan.
These bold initial actions aim to significantly
improve public finances in a manner that
protects the most vulnerable in society and
strengthen the foreign exchange regime, IMF spokesperson Julie Kozack, via statement.
Their decisive implementation will
help stabilize the economy and set
the basis for more sustainable and
private-sector led growth, IMF spokesperson Julie Kozack, via statement