BUENOS AIRES (Reuters) – Argentina’s parallel market peso appreciated against the U.S. dollar on Monday, while the local stock market suffered, after new economic measures introduced by President Javier Milei’s government this weekend took effect became.
Argentina’s economy minister outlined a plan on Saturday to stop expanding the monetary base in an effort to combat inflation. The next day, he announced a $1.5 billion purchase from the central bank to pay bond interest due in January.
The peso extended its gains to 6.01% at 1,415 pesos per dollar, after rising about 2% in early trading.
The difference between the black market ‘blue’ exchange rate and the official rate narrowed slightly to 53%, after reaching around 60% last week.
“The announced measures can only be taken as positive if the gap narrows significantly in the coming days and inflation plummets in the coming months,” local settlement and clearing agent Neix said.
The benchmark Merval tumbled more than 12%, while over-the-counter bonds fell 3%.
