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| Version 2 | Version 3 |
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| Argentina to relax foreign exchange controls | Argentina to relax foreign exchange controls |
| (about 1 hour later) | |
| Argentina has announced a relaxation of currency controls, the government has said, which experts say is likely to weaken the peso. | Argentina has announced a relaxation of currency controls, the government has said, which experts say is likely to weaken the peso. |
| President Mauricio Macri hopes the move will boost exports and spark economic growth. | President Mauricio Macri hopes the move will boost exports and spark economic growth. |
| Farmers in the country have been waiting for the currency to fall before selling stockpiles of soybeans. | Farmers in the country have been waiting for the currency to fall before selling stockpiles of soybeans. |
| The official exchange rate of 10 pesos to the dollar is not matched by a much stronger black market rate. | |
| Analysts expect the official rate to weaken to between 13.5 and 15.00 per dollar, in line with the black market rate. | Analysts expect the official rate to weaken to between 13.5 and 15.00 per dollar, in line with the black market rate. |
| The Argentine finance minister, Alfonso Prat-Gay, said he accepted the rate would weaken to "close to" 14.2 to the dollar. | The Argentine finance minister, Alfonso Prat-Gay, said he accepted the rate would weaken to "close to" 14.2 to the dollar. |
| Mr Prat-Gay also said the country was negotiating a credit line with international banks to build a credit line of more than $5bn to replenish the country's international reserves. | Mr Prat-Gay also said the country was negotiating a credit line with international banks to build a credit line of more than $5bn to replenish the country's international reserves. |
| Analysis: Candace Piette, Americas editor | Analysis: Candace Piette, Americas editor |
| Alfonso Prat-Gay said the old system had killed the goose that laid the golden egg by restricting the growth of the economy. Now all exchange controls will end for businesses, who will be allowed to buy as many dollars as they need. The government hopes this will help trade. But ordinary Argentines will still face restrictions on the amount of dollars they can buy a month. The peso is expected to settle close to the much lower black market rate - which would mean a steep devaluation. But the central bank has been given the right to intervene if it falls too quickly. | Alfonso Prat-Gay said the old system had killed the goose that laid the golden egg by restricting the growth of the economy. Now all exchange controls will end for businesses, who will be allowed to buy as many dollars as they need. The government hopes this will help trade. But ordinary Argentines will still face restrictions on the amount of dollars they can buy a month. The peso is expected to settle close to the much lower black market rate - which would mean a steep devaluation. But the central bank has been given the right to intervene if it falls too quickly. |
| The authorities said the move to freely float the peso was a "dirty float", meaning the central bank could still intervene if it felt it necessary. | The authorities said the move to freely float the peso was a "dirty float", meaning the central bank could still intervene if it felt it necessary. |
| The country's previous leader, Cristina Fernandez, used central bank reserves to prop up the peso. | The country's previous leader, Cristina Fernandez, used central bank reserves to prop up the peso. |
| But Mr Macri, who was elected last month and inaugurated on Thursday, had vowed to change the policy. | But Mr Macri, who was elected last month and inaugurated on Thursday, had vowed to change the policy. |
| He will allow businesses and individuals freer access to US dollars. Argentina has been plagued by high inflation and financial volatility in recent decades. | He will allow businesses and individuals freer access to US dollars. Argentina has been plagued by high inflation and financial volatility in recent decades. |