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ECONOMY | 14-08-2019 17:05

Country risk hits 1,741 points, peso weakens to 63 per dollar

The peso continued to depreciate against the dollar on Wednesday, dropping eight percent to 63 per greenback at Banco Nación.

The peso continued to depreciate against the dollar on Wednesday, dropping eight percent to 63 per greenback at Banco Nación.

Earlier in the day, it had opened at 58 pesos in Banco Nación and 59.30 among City traders.

Since Sunday's PASO election, the peso has slumped by around 30 percent against the dollar. Last Friday, it stood at 46.55 per greenback.

Attempting to calm the currency, the Central Bank sold US$248 million of reserves, plus an additional US$60 million on behalf of the Treasury. Since the PASOs, the monetary authority has sold reserves totalling some US$503 million.

Country risk, or riesgo país, meanwhile, has now risen 1,741 points, rising more than 18 percent.

Earlier this morning, President Macri announced plans for salary hikes and tax cuts after voters turned resoundingly against his austerity policies, sparking days of economic turmoil.

The president said his government will cut income taxes for workers, increase subsidies and introduce a 90-day freeze on fuel prices to help ease the economic shock. He also announced an unspecified increase in the monthly minimum wage – currently 12,500 pesos – saying it would benefit two million workers.

"My task is to ensure governance. Dialogue is the only way. Uncertainty has caused a lot of damage and forces us to be responsible. I want to convey peace of mind in this electoral process that has begun," he said in a message released before markets opened.

– TIMES/AFP/NA

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