Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


Argentine Peso, Bonds Whiplashed After Capital Controls Imposed

Reuters

   BUENOS AIRES - Argentine bond prices fell to record lows on Monday and
   the official and black market pesos diverged after the country imposed
   capital controls in a bid to stem a currency rout that is sharpening
   the risk of default.

   The move on Sunday by President Mauricio Macri a free-markets advocate
   who abolished capital controls after he came to power in 2015, was a
   sharp about-face for his administration after the conservative leader
   was pummeled in primary elections in August.

   The country's peso, bonds and equities have since tumbled, forcing
   Macri to unveil plans to delay payments on around $100 billion of debts
   as well as the currency controls restricting the purchase of dollars.

   The peso closed 0.88% stronger in official markets, but closed 0.79%
   weaker in the black market at 63.5 per dollar, a divergence
   underscoring a loss of trust in the official price that was also helped
   by a market holiday in the United States.

   "The dollar at this level is now strong enough," Treasury Minister
   Hernan Lacunza told a news conference. "All these measures have the
   central objective of stability."

.