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Dollar creeps toward 20 pesos

The dollar’s incessant rise comes after the government and Central Bank eased off on their inflation target for 2018, from 10 to 15 percent. Soon after, the Central Bank announced a cut to interest rates.

Wednesday 31 January, 2018
The dollar surpassed the 19-peso mark in late December on news the government was downgrading its inflation target for 2018 from 10 to 15 percent.
The dollar surpassed the 19-peso mark in late December on news the government was downgrading its inflation target for 2018 from 10 to 15 percent. Foto:Cedoc-Perfil

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The US dollar was creeping toward 20 pesos at banks across Buenos Aires City on Wednesday.

On average, banks were selling the greenback seven cents higher than Tuesday’s rate, at 19.97 pesos, and buying at 19.46 pesos.

The dollar’s incessant rise comes after the government and Central Bank eased off on their inflation target for 2018, from 10 to 15 percent. Soon after, the Central Bank announced a cut to interest rates.

Inflation for December, 2017, and January, 2018 has surpassed six percent, according to INDEC statistics bureau figures, while the US dollar has soared 13.4 percent in the same period.

At the beginning of December, the dollar had dropped to AR$17.50, its lowest level in three months, on the back of complaints from industry about a loss of competitiveness.

However, experts agree that the government is now hoping to capitalise on the ongoing devaluation of the national currency to improve the country's competitiveness.

-TIMES


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