Economics
Argentina Peso Tumbles Ahead of Crucial IMF Verdict
- Macri’s government struggling to shore up investor confidence
- Government’s communication style is mystifying some traders
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The International Monetary Fund said it will consider Argentina’s request to speed up disbursements from a $50 billion credit line as the government seeks to restore investor confidence.
The IMF responded about nine hours after President Mauricio Macri surprised the nation by saying in a televised speech that Argentina needed the money to demonstrate it had enough cash on hand to fund the 2019 budget without going further into debt. His statement, which suggested the IMF had signed off but carried few details, was meant to reassure investors. Instead, it sparked confusion among traders who have complained about poor communication and disjointed plans. The peso fell 4.8 percent on Thursday to a fresh record low.