Argentina gov't moves to calm FX market, pledges no post-election devaluation

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Masstown farmer launches pumpkins over a kilometre for charity | SaltWireBUENOS AIRES - Argentina's government intervened in the foreign exchange market on Thursday to tamp down volatility ahead of the country's general elections on Sunday, while officials said there would be no sharp currency devaluation after the vote.

"The range of prices is enormous with lots of fear about the government's drive to stop illegal operations and the closure of many exchange houses," a foreign exchange trader said on condition of anonymity. Argentina's tight capital controls since 2019 have pushed many people into illegal black markets and other informal parallel markets to buy dollars, creating a headache for the government which has pegged the peso at 350/dollar since August.

He added that from Nov. 15 the currency would be put on a"crawling peg" that allowed it to devalue by 3% monthly.

 

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