The Argentine peso, traded under strict capital controls, fell 0.5% on Monday morning to 126.11 per dollar after the country’s economy minister abruptly resigned over the weekend and was replaced. by an economist seen by market agents as less heterodox.
Argentine President Alberto Fernández appointed Silvina Batakis as the new economy minister on Sunday night, following the unexpected resignation of Martín Guzmán amid growing economic crises and tensions within the government.
Traders said the currency devaluation was in line with movements that usually happen at the beginning of the week.
Exchange controls in place since 2019 have kept the peso on a slow depreciation path.
Investors, however, will be closely watching trading in informal shadow markets, where the exchange rate is twice the official spot rate due to high demand for foreign currency from investors who are prevented from buying dollars through official channels.
Source: CNN Brasil
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