BUENOS AIRES – The Argentine peso gained 2.62 percent against the dollar in currency markets on Tuesday after the government announced measures that included the temporary suspension of a phased reduction in taxes on agricultural exports.
The new policy is expected to narrow the budget deficit by more than $2.1 billion between now and the end of 2019, President Mauricio Macri’s administration said.
The peso dropped sharply since the end of last week amid international economic anxiety about US tariff policies and the Turkish financial crisis.
The Central Bank of Argentina decided on Monday night to raise its benchmark interest rate from 40 percent to 45 percent.
Argentina’s currency has declined 45 percent over the last four months and nearly 60 percent since the start of the year.
The plunge in the value of the peso motivated the Macri government to sign a $50 billion stand-by loan accord with the International Monetary Fund.