A Country That’s Suffered More Than Its Share of Fiscal Issues Is Back in the Headlines. President Javier Milei of Argentina Vowed to Keep His Free-Market Economic Program in Place—That Despite a Crushing Loss to the Center-Left Peronist Opposition in the Province of Buenos Aires on Sunday.

Argentina's markets tumble, with Peso at historic low

Argentina is grappling with the world's highest inflation rate. To cope, the country's central bank just launched its biggest banknote ever – the 10,000 Peso bill. This is five times larger than the previous top denomination.

Argentina issues 10,000 Peso bill to combat world's highest inflation

Days after taking oath, Argentina's President has taken his very first steps in implementing his short therapy programme. President Milei devalues Peso by 54%.

Argentina's government devalues Peso by 54%

In a move to curb US dollar hoarding and counter an anticipated devaluation, Argentina's central bank has imposed restrictions on the foreign currency holdings of commercial lenders, Bloomberg reported.&nbsp;

The decree, published on Thursday, dictates that banks may not hold more than the lowest recorded amount between October 12 and December 6. The measure, effective immediately and valid until the year-end, aims to compel banks to unwind their existing dollar portfolios, thereby increasing the supply in the official exchange market. &nbsp;

This move is seen as a proactive step to support the peso as investors brace for a potential 27 per cent drop in the currency's value on Monday, with expectations of a 44 per cent devaluation under the incoming President, Javier Milei.&nbsp;

Bloomberg sources suggest that the new regulation forces banks to liquidate their current dollar holdings, potentially offering the central bank a much-needed boost. The measure aligns with Milei's commitment to address the currency issue, signalling a departure from the current administration's policies. &nbsp;

The Central Bank's spokespersons clarified that the objective is to prevent banks from increasing their dollar holdings on the eve of Milei's inauguration. Despite the silence from Milei's team, the move underscores the urgency felt within the government to stabilise the economy and manage the impending devaluation.&nbsp;

Milei's team has hinted at maintaining currency controls temporarily while&nbsp;seemingly deferring&nbsp;plans to scrap the peso altogether. The incoming administration faces the challenge of sustaining the peso's value amid economic uncertainties. &nbsp;

Market analysts suggest that the current exchange rate is unsustainable, emphasising the need for decisive measures to avert a deeper economic crisis.&nbsp;

(With inputs from Bloomberg)&nbsp;

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In a move to curb US dollar hoarding and counter an anticipated devaluation, Argentina's central bank has imposed restrictions on the foreign currency holdings of commercial lenders, Bloomberg reported.

In a move to curb US dollar hoarding and counter an anticipated devaluation, Argentina's central bank has imposed restrictions on the foreign currency holdings of commercial lenders, Bloomberg reported. The decree, published on Thursday, dictates that banks may not hold more than the lowest recorded amount between October 12 and December 6. The measure, effective immediately and valid until the year-end, aims to compel banks to unwind their existing dollar portfolios, thereby increasing the supply in the official exchange market. This move is seen as a proactive step to support the peso as investors brace for a potential 27 per cent drop in the currency's value on Monday, with expectations of a 44 per cent devaluation under the incoming President, Javier Milei. Bloomberg sources suggest that the new regulation forces banks to liquidate their current dollar holdings, potentially offering the central bank a much-needed boost. The measure aligns with Milei's commitment to address the currency issue, signalling a departure from the current administration's policies. The Central Bank's spokespersons clarified that the objective is to prevent banks from increasing their dollar holdings on the eve of Milei's inauguration. Despite the silence from Milei's team, the move underscores the urgency felt within the government to stabilise the economy and manage the impending devaluation. Milei's team has hinted at maintaining currency controls temporarily while seemingly deferring plans to scrap the peso altogether. The incoming administration faces the challenge of sustaining the peso's value amid economic uncertainties. Market analysts suggest that the current exchange rate is unsustainable, emphasising the need for decisive measures to avert a deeper economic crisis. (With inputs from Bloomberg) WATCH WION LIVE HERE

Argentina imposes limits on banks’ dollar holdings amid concerns over devaluation 

Days after libertarian Javier Milei's triumph in Argentina's presidential election, the black-market peso tumbled by 12 per cent to 1,045 per dollar, Reuters reported on Tuesday. &nbsp;

Simultaneously, local stocks and bonds experienced a surge fuelled by expectations of a more market-friendly economic approach. Argentina's S&amp;P Merval stock index surged by 23 per cent, with state energy firm YPF's shares rising by nearly 39 per cent, reflecting optimism amid hints of potential privatisation under Milei's administration.

Milei has proposed economic policies that include significant spending cuts. This has driven the weakening of peso in the black market, reaching 1,045 per dollar compared to the official exchange rate of 356 per dollar. Speculations around Milei's economic plans, potentially involving a peso devaluation or a parallel use of the peso and US dollar, have contributed to uncertainties in the local currency market.

While international bonds saw a second consecutive day of gains, reaching as high as 1.7 cents on the 2029 note, equities faced fluctuations. The Global X MSCI Argentina ETF dipped slightly after a significant jump on Monday, while US-listed shares of Argentine banks maintained substantial gains.

The S&amp;P Global Ratings analysts have noted Argentina's imminent policy shifts under Milei, emphasising the country's historical tendency for substantial policy swings with changing governments. &nbsp;

Milei, known for his critiques of major trading partners China and Brazil, has promised drastic economic reforms, with his presidency commencing on December 10. &nbsp;

Despite earlier indications of favouring complete "dollarisation", Milei's first speech did not reference such a move, leaving questions about the speed of peso abandonment.

Morgan Stanley analysts anticipate an 80 per cent drop in the peso over the next six weeks, reflecting concerns about the currency's future under Milei's administration. &nbsp;

(With inputs from Reuters)

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Days after libertarian Javier Milei's triumph in Argentina's presidential election, the black-market peso tumbled by 12 per cent to 1,045 per dollar, Reuters reported on Tuesday.

Days after libertarian Javier Milei's triumph in Argentina's presidential election, the black-market peso tumbled by 12 per cent to 1,045 per dollar, Reuters reported on Tuesday. Simultaneously, local stocks and bonds experienced a surge fuelled by expectations of a more market-friendly economic approach. Argentina's S&P Merval stock index surged by 23 per cent, with state energy firm YPF's shares rising by nearly 39 per cent, reflecting optimism amid hints of potential privatisation under Milei's administration. Milei has proposed economic policies that include significant spending cuts. This has driven the weakening of peso in the black market, reaching 1,045 per dollar compared to the official exchange rate of 356 per dollar. Speculations around Milei's economic plans, potentially involving a peso devaluation or a parallel use of the peso and US dollar, have contributed to uncertainties in the local currency market. While international bonds saw a second consecutive day of gains, reaching as high as 1.7 cents on the 2029 note, equities faced fluctuations. The Global X MSCI Argentina ETF dipped slightly after a significant jump on Monday, while US-listed shares of Argentine banks maintained substantial gains. The S&P Global Ratings analysts have noted Argentina's imminent policy shifts under Milei, emphasising the country's historical tendency for substantial policy swings with changing governments. Milei, known for his critiques of major trading partners China and Brazil, has promised drastic economic reforms, with his presidency commencing on December 10. Despite earlier indications of favouring complete "dollarisation", Milei's first speech did not reference such a move, leaving questions about the speed of peso abandonment. Morgan Stanley analysts anticipate an 80 per cent drop in the peso over the next six weeks, reflecting concerns about the currency's future under Milei's administration. (With inputs from Reuters) WATCH WION LIVE HERE

Argentina's black market peso plummets as libertarian Milei secures presidential win

The Mexican Coast was slammed by Hurricane Otis early Wednesday. Morning battering houses and hotels forcing the tourists to run for cover as it pounded the coast.

Hurricane Otis slams Mexican coast as a category 5 storm

In the latest development, the government has claimed that the international monetary fund wanted a '100% devaluation' of the Peso. But the number came down to 18% after some discussions, it added. The statement however underscores rising pressure on the embattled peso, which was devalued and pegged at 350 per dollar on Monday.

Argentina claims IMF wanted 100% devaluation of Peso

Mexico's vibrant remittance ecosystem is one of the biggest in the world. It supports millions of families and is now under severe pressure. Watch this report for more.

Increase in Peso's value & rising inflation disrupt remittances

Mexico's vibrant remittance ecosystem, one of the world's largest, supporting millions of families, is now facing severe pressure due to a significant increase in the value of the Mexican peso and rising inflation, disrupting lives for many in the country.

With Mexico receiving nearly $60 billion in remittances annually, primarily from the United States, these financial transfers play a crucial role in household spending in the nation.&nbsp;

The Mexican peso has surged by more than 14 percent against the U.S. dollar this year. Just a year ago, it traded at around 20.40 pesos per dollar, but on Friday, it reached a seven-and-a-half-year high of 16.63 pesos per dollar.

The&nbsp;strengthening of peso can be attributed to factors such as higher interest rates and the relocation of manufacturing capacity to the region, impacting remittances in Mexico.

Mexicans face remittance&nbsp;challenges&nbsp;

President Andres Manuel Lopez Obrador's substantial investment in social assistance programs and encouragement for countrymen to send funds back to Mexico have made consumer spending a pillar of economic development since the end of the Covid-19 pandemic.

Reuters quoted Carlos Serrano, the head economist at BBVA Mexico, as saying that the strengthening peso has worsened the buying power of remittances, particularly affecting lower-income families in states that receive the majority of remittances.

Headline inflation, which had reached a peak of 8.7 percent last summer, has since decreased to less than half that rate. However, core inflation remains two percentage points higher, leading the central bank to maintain interest rates at 11 percent, creating pressure for borrowers.

Despite remittances to Mexico heading for another record year, it presents a challenge for the Spanish-speaking country. &nbsp;Reuters quoted Pablo Lopez Sarabia, an economist at Tecnologico de Monterrey, as saying that the rise in remittances indicated that some Mexicans are sending more money to tackle the impact of inflation.

(Inputs from Reuters)

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Mexico's vibrant remittance ecosystem, one of the world's largest, supporting millions of families, is now facing severe pressure due to a significant increase in the value of the Mexican peso and rising inflation, disrupting lives for many in the country.

Mexico's vibrant remittance ecosystem, one of the world's largest, supporting millions of families, is now facing severe pressure due to a significant increase in the value of the Mexican peso and rising inflation, disrupting lives for many in the country. With Mexico receiving nearly $60 billion in remittances annually, primarily from the United States, these financial transfers play a crucial role in household spending in the nation. The Mexican peso has surged by more than 14 percent against the U.S. dollar this year. Just a year ago, it traded at around 20.40 pesos per dollar, but on Friday, it reached a seven-and-a-half-year high of 16.63 pesos per dollar. The strengthening of peso can be attributed to factors such as higher interest rates and the relocation of manufacturing capacity to the region, impacting remittances in Mexico. Mexicans face remittance challenges President Andres Manuel Lopez Obrador's substantial investment in social assistance programs and encouragement for countrymen to send funds back to Mexico have made consumer spending a pillar of economic development since the end of the Covid-19 pandemic. Reuters quoted Carlos Serrano, the head economist at BBVA Mexico, as saying that the strengthening peso has worsened the buying power of remittances, particularly affecting lower-income families in states that receive the majority of remittances. Headline inflation, which had reached a peak of 8.7 percent last summer, has since decreased to less than half that rate. However, core inflation remains two percentage points higher, leading the central bank to maintain interest rates at 11 percent, creating pressure for borrowers. Despite remittances to Mexico heading for another record year, it presents a challenge for the Spanish-speaking country. Reuters quoted Pablo Lopez Sarabia, an economist at Tecnologico de Monterrey, as saying that the rise in remittances indicated that some Mexicans are sending more money to tackle the impact of inflation. (Inputs from Reuters) WATCH WION LIVE HERE

Stronger Mexican peso cuts the value of remittances from the U.S.

Two thousand peso bill, the largest denomination banknote in Argentina, went into circulation on Monday (May 22). However, the rapid depreciation of the nation's currency has meant that 2000 pesos are worth only USD 8.50 at the official exchange rate. It is just over USD 4 in commonly used parallel markets.

This year alone, the peso has shed around a quarter of its value against the US Dollar. This happened in spite of the strict capital controls meant to slow its fall. Argentinians mostly buy dollars in unofficial markets. In these markets, dollars trade at 480 pesos as opposed to the official rate of 235.

The South American nation is currently battling an inflation rate of 109 per cent. This is one of the highest in the world. A central bank poll estimates that inflation can hit nearly 130 per cent by the end of this year. The interest rates have been hiked to a massive 97 per cent.

Watch | Argentina faces economic crisis as annual inflation goes up

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&nbsp;

In Argentina, around half of all commercial transactions are still carried out in cash. The new 2000 peso note is expected to partially ease issues that have seen banks run short of vault space and both locals and tourists often carry around bags of cash to pay for things.

"This higher denomination bill will improve the operation of ATMs and at the same time optimize the movement of cash," the central bank said in a statement on Monday. The largest bank note previously had been the 1,000 peso bill.

The new 2,000 peso banknote has a design commemorating the development of science and medicine in Argentina, the central bank said.

<h2>Conditions deteriorate</h2>

Even as the central bank has introduced the 2000-peso note, conditions for ordinary Argentinians remain hard. Many of them are converting their pesos into US Dollars since they are looking at the US currency as their only defence against inflation.&nbsp;

But Argentina has imposed restrictions on purchasing foreign currencies. This has fuelled the informal exchange market.

"Economic conditions are deteriorating rapidly and will continue as the electoral process approaches," said Daniel Kerner, managing director for Latin America at the Eurasia Group, last week. He was quoted by AFP.

"Reserves are at a critical level, with a severe drought hurting export revenues."

The drought has compounded problems in the economy. It has badly affected the agricultural sector. The sector is vital for the country's ability to source foreign currency.

Since the start of the year, Argentina has lost more than $5.5 billion in international reserves, which have dropped to $33.5 billion, according to the central bank.

(With inputs from agencies)

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&nbsp;

Two thousand peso bill, the largest denomination banknote in Argentina, went into circulation on Monday (May 22). However, the rapid depreciation of the nation's currency has meant that 2000 pesos are worth only USD 8.

Two thousand peso bill, the largest denomination banknote in Argentina, went into circulation on Monday (May 22). However, the rapid depreciation of the nation's currency has meant that 2000 pesos are worth only USD 8.50 at the official exchange rate. It is just over USD 4 in commonly used parallel markets. This year alone, the peso has shed around a quarter of its value against the US Dollar. This happened in spite of the strict capital controls meant to slow its fall. Argentinians mostly buy dollars in unofficial markets. In these markets, dollars trade at 480 pesos as opposed to the official rate of 235. The South American nation is currently battling an inflation rate of 109 per cent. This is one of the highest in the world. A central bank poll estimates that inflation can hit nearly 130 per cent by the end of this year. The interest rates have been hiked to a massive 97 per cent. Watch | Argentina faces economic crisis as annual inflation goes up × In Argentina, around half of all commercial transactions are still carried out in cash. The new 2000 peso note is expected to partially ease issues that have seen banks run short of vault space and both locals and tourists often carry around bags of cash to pay for things. "This higher denomination bill will improve the operation of ATMs and at the same time optimize the movement of cash," the central bank said in a statement on Monday. The largest bank note previously had been the 1,000 peso bill. The new 2,000 peso banknote has a design commemorating the development of science and medicine in Argentina, the central bank said. Conditions deteriorate Even as the central bank has introduced the 2000-peso note, conditions for ordinary Argentinians remain hard. Many of them are converting their pesos into US Dollars since they are looking at the US currency as their only defence against inflation. But Argentina has imposed restrictions on purchasing foreign currencies. This has fuelled the informal exchange market. "Economic conditions are deteriorating rapidly and will continue as the electoral process approaches," said Daniel Kerner, managing director for Latin America at the Eurasia Group, last week. He was quoted by AFP. "Reserves are at a critical level, with a severe drought hurting export revenues." The drought has compounded problems in the economy. It has badly affected the agricultural sector. The sector is vital for the country's ability to source foreign currency. Since the start of the year, Argentina has lost more than $5.5 billion in international reserves, which have dropped to $33.5 billion, according to the central bank. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Argentina: 2000 peso notes enter circulation, still worth $4

The philippine currency Peso fell to the lowest level in more than 16 years on Wednesday (June 22). This is being seen as the Philippine central bank's preference for gradual reduction of interest-rate hike.

On Wednesday, peso dropped to 54.60 per dollar. This was a drop by 0.6 per cent. This was the peso's weakest level since November 2005. It is predicted to fall for the fifth straight mont. This is the longest streak of losses since 2015.&nbsp;

Felipe Medalla, the Philippine economist and incoming governor of the Philippines' central bank on Monday said that his aim was to continue raising rates at gradual pace beyond August. Monetary authorities from Indian to the US have embarked on larger hikes in interest rates to curb inflation.

Bloomberg said that eight of the 25 economists surveyed by it were already calling for an increase of 50 basis point at Thursday's meeting. The rest, as quoted by Bloomberg preferred 25 basis points hike.&nbsp;

Felipe Medalla, the economist who sits on the board of Bangko Sentral ng Pilipinas is due to take over as governor on July 1. He had signalled 25 basis-point increases for the meeting that took place this week and the one in August.

The philippine currency Peso fell to the lowest level in more than 16 years on Wednesday (June 22). This is being seen as the Philippine central bank's preference for gradual reduction of interest-rate hike.

The philippine currency Peso fell to the lowest level in more than 16 years on Wednesday (June 22). This is being seen as the Philippine central bank's preference for gradual reduction of interest-rate hike. On Wednesday, peso dropped to 54.60 per dollar. This was a drop by 0.6 per cent. This was the peso's weakest level since November 2005. It is predicted to fall for the fifth straight mont. This is the longest streak of losses since 2015. Felipe Medalla, the Philippine economist and incoming governor of the Philippines' central bank on Monday said that his aim was to continue raising rates at gradual pace beyond August. Monetary authorities from Indian to the US have embarked on larger hikes in interest rates to curb inflation. Bloomberg said that eight of the 25 economists surveyed by it were already calling for an increase of 50 basis point at Thursday's meeting. The rest, as quoted by Bloomberg preferred 25 basis points hike. Felipe Medalla, the economist who sits on the board of Bangko Sentral ng Pilipinas is due to take over as governor on July 1. He had signalled 25 basis-point increases for the meeting that took place this week and the one in August.

Philippine currency peso drops to lowest level in more than 16 years

Argentine President Mauricio Macri vowed to win a second term despite a surprisingly strong performance by the opposition in the primary election that set off a shockwave through markets, crashing the peso currency and sending stocks and bonds tumbling.

Argentina: Economic crisis follows poll results

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