An official at the Argentine central bank said Monday that his country will reduce the official exchange rate of the peso to 350 against the dollar, about 18% below the closing price on Friday, according to Bloomberg.
The official added that the central bank will also raise the main interest rate to 118% from the current 97%.
The changes come after right-wing candidate Javier Milley won a key primary on Sunday.
Argentina has been suffering from an economic crisis for some time, and is expected to enter a recession this year, with annual inflation exceeding 115%.
The International Monetary Fund backed the country with a record $44 billion bailout under former President Mauricio Macri. But the deal was renegotiated and refinanced under former President Alberto Fernandez.
On August 1, Argentina owed $454 million to the fund as interest on the loan, but the total amount rose to $775 million when additional fees associated with the large debt were added.
Follow the latest news on Google News
