Argentine Peso Slides as Officials Say Currency Is Under Attack

Wednesday, 27 Aug 2014 12:15 PM

 

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink

Argentina’s peso slumped to a record low, deepening its slide since last month’s default to 2.4 percent and prompting government officials to say holdout creditors are behind a speculative attack on the currency.

The peso slid 0.1 percent as of 12:46 p.m. in Buenos Aires to a record 8.4077 pesos per dollar in the official market, which is controlled by the central bank. Yesterday, the peso weakened 1.6 percent to a record-low 14.2 pesos per dollar in the illegal black market, where savers go to skirt currency controls.

The holdouts “are acting through financial groups to generate negative expectations with speculative attacks against the currency,” Cabinet Chief Jorge Capitanich said Wednesday. “They’re generating an artificial crisis where there is none.”

Argentina defaulted last month after a U.S. judge blocked payment on the country’s international bonds because President Cristina Fernandez de Kirchner refused to also pay holdout creditors led by Elliott Management Corp. The country was ordered to pay the holdouts about $1.5 billion on bonds left over from an earlier default in 2001.

The government said Aug. 19 it’s planning to skirt the ruling by paying international bonds locally. The peso weakened last week at the fastest rate since January, when the government devalued the currency 19 percent.

“The vulture funds’ plan is to attack the currency,” Economy Minister Axel Kicillof said in a separate appearance later today. “They threatened with a huge devaluation of the currency if they don’t get paid.”

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Strategist Grantham Predicts S&P 500 Will Rise to 2,250 Then Crash

Wednesday, 26 Nov 2014 16:04 PM

The 5½-year bull market for stocks has a bit further to go, but then it's going to collapse, says Jeremy Grantham, chief . . .

OPEC Rocked by US Fracking, Can't Cut Production

Thursday, 27 Nov 2014 14:23 PM

OPEC took no action to ease a global oil-supply glut, resisting calls from Venezuela that the group needs to stem the ro . . .

Toyota Recalls More Cars for Dangerous Takata Air Bags

Thursday, 27 Nov 2014 14:26 PM

Toyota Motor Corp. recalled more vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and  . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved