Out of Options and Money, Argentina Presses the Panic Button
- Central bank hikes key interest rate to 118% from current 97%
- Decision comes after Peronist coalition came third in primary
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Argentina’s government finally hit the panic button.
After years of trying to avoid a currency devaluation that would add to soaring inflation and reduce its popularity with voters, on Monday it did just that. The move was an admission by President Alberto Fernandez that his administration had run out of options — and money — to defend an unsustainable exchange rate after suffering a stinging defeat in a crucial primary election on Sunday.