for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Argentina central bank says will allow managed peso float

BUENOS AIRES, Oct 1 (Reuters) - Argentina’s central bank said on Thursday that it would allow a managed float of the peso currency and abandon its current “uniform daily devaluation” strategy as it seeks to adapt its monetary policy amid sharpening economic turmoil.

The move comes with the gap between the official exchange rate and the exchange rate quoted in the country’s informal currency markets close to 93% due to the distrust of investors and strong black market demand for dollars.

Among a series of measures, the bank also increased the overnight repo rate to 24%, from the current 19%, and said it would block senior public officials from purchasing foreign currency to accumulate it.

At the same time, it said it would process authorizations in the ‘ROFEX’ futures market to allow the purchase of Chinese yuan against Argentine pesos for foreign trade operations. (Reporting by Jorge Otaola, writing by Dave Sherwood)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up