Economics
Argentina's Policy Shift Pays Dividends as Peso Stabilizes
- Peso jumped almost 10 percent this week after policy change
- Central bank is draining pesos from the financial system
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Argentina’s central bank is taking no prisoners in its fight to save the peso -- and the policy is working.
The bank is draining almost every peso it can find from the financial system in a new approach that has triggered the biggest three-day rally in the currency in 15 years. The peso trimmed some of the gains Thursday as U.S. Treasuries sink, curbing demand for emerging market assets. Still, the currency has gained 7 percent this week, after losing as much as 55 percent this year.