The president of America has announced the emergency measures to support Peso in an attempt to strengthen it. The announcement from the president came on Monday which addressed the concerns of the investors regarding the solvency of the country as it expects to tap the credit line at an international level. The announcement from the president comes as the latest advancement in the country’s attempt to ease up the growing concerns because of the depleting value of the currency of the nation, just a few days after its Central Bank interfered in the issue by rising up the interest rates drastically.
Mauricio Macri, the president of the country addressed the nation Monday which was telecasted publicly. He said that he is seeking to lower the deficit budget of the government by putting up new taxes over the Exports. He added that he is planning up to restructure the whole cabinet of the country and cut down almost half Ministries. Macri said, what the country is facing is the basic problem, that is it cannot spend higher than what it has. This isn’t a just another issue which the country is facing.
In spite of the announcements made by the president, the value of Peso kept on falling down losing 3% against the American dollar. In just 8 months of the current year, the Peso lost around 50% of the value as against the American Dollar. In order to dampen the plummeting value of the currency, Central Bank hiked the basic rate of interest to 60% which was 45% earlier. Argentina also seeks a quicker disbursement from the $50B credit agreement which was finalized a few months back. The tax which is levied over the exports will play a vital role in helping the country with the elimination of fiscal deposit in the next year. The country has set goal to achieve the surplus by the year 2020.