Argentina’s Milei Devalues Peso by 54% in First Batch of Shock Measures
- Government to introduce crawling peg that weakens 2% per month
- Milei to slash subsidies and social security payments
This article is for subscribers only.
Argentina devalued the peso by 54%, overhauled its crawling peg and announced massive spending cuts to eliminate its primary fiscal deficit next year as the first steps in President Javier Milei’s shock-therapy program.
The newly inaugurated administration weakened the official exchange rate to 800 pesos per dollar, Economy Minister Luis Caputo said in a televised address after the close of local markets on Tuesday. It was 366.5 per dollar before the address. The central bank will henceforth target a monthly devaluation of 2%.