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Argentina Turns to Orthodox Policy Signals to Ease Dollar Craze

  • Government attempts policy reversal to restore confidence
  • Measures include higher rates, more muted peso emission
Updated on

After failing to stem a run on its currency with heavy-handed restrictions, Argentina is shifting tack and has begun adopting more orthodox economic measures to try to shore up investor confidence and lure capital back into the country.

It curbed growth in the money supply in October, raised interest rates and promised not to finance itself with temporary advances from the central bank in the short term, backtracking on some of the most expansionist monetary policies implemented as the pandemic hit.