Argentina's Central Bank Unexpectedly Raised Its Benchmark Interest Rate To Rescue The Peso

- Aug 20, 2018-

In recent days, Argentina's central bank unexpectedly raised its seven-day Leliq rate by 500 basis points to 45 per cent and kept it at least until October, when the peso fell less. Earlier, the peso fell 2.5 per cent against the dollar to a record low of 30 pesos to the dollar, amid concerns about the impact of Turkey's financial crisis on emerging market currencies and the widening of an anti-corruption probe in Argentina. Argentina's economy has entered a recession this year, the fourth time this year that the central bank has raised interest rates unexpectedly. The Argentine peso is down 35 percent this year, second only to the Turkish lira.