The Argentine peso continued its downward spiral this week, slipping 20 cents to 21 pesos to the dollar.
On Wednesday, Argentina’s Central Bank was buying the greenback at 20.50 pesos and selling it at 21 pesos.
Prior to a four-day long-weekend, on Friday, those values sat at 20.30 and 20.80 respectively.
INTEREST RATE SURPRISE
Exchange houses registered record values on Friday when the dollar jumped to 21.20 pesos, ending the day at 20.89 pesos.
In turn, the Central Bank (BCRA) surprised markets by raising its key interest rate to 30.25 percent from 27.25 percent, reacting after the peso dropped to a record low against the US dollar.
“The Central Bank has ordered an increase its monetary policy rate by 300 basis points to 30.25 percent,” the BRCA said in a statement.
The institution cited the weakness of the peso as a cause and and vowed to act again if high inflation continues to be a problem.