The Argentine government has asked International Monetary Fund (IMF) for financial support. It responds to rapid depreciation of Argentine peso. Argentina’s President Mauricio Macri said that “talks about financial assistance with IMF” have begun. “We are going only possible way to escape deadlock and prevent a major economic crisis that would harm us all,” said Macri.
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Rising interest rates in US recently led investors to withdraw ir money from emerging markets and invest in US. Especially Argentina is affected by capital deduction. The peso lost eight percent in value over US dollar last week.
The Argentine Federal Reserve tried to curb depreciation of peso and had increased key interest rate for week-long central bank money to 40 percent. It was already third interest rate increase within a few days. In addition, Finance Minister Nicolás Dujovne announced budget cuts of 3.2 billion dollars.
