Argentina Rolls Out Sweeping Economic Reforms to Stabilize Peso and Boost Competitiveness
• Argentina's government allowed the peso currency to plunge over 50% to 801 per dollar • The rapid devaluation is part of drastic economic reforms announced by new Economy Minister Luis Caputo • Reforms aim to tackle negative net foreign currency reserves, high inflation, capital controls, and budget deficits • Markets reacted positively, with bonds gaining over 2 cents on the dollar and forwards showing bets on further devaluation • Reforms cut energy and transport subsidies, outline new taxes, put peso on monthly devaluation path to boost competitiveness