Staff members work at a stock exchange in Buenos Aires, Argentina, Aug. 14, 2019. (Photo by Martin Zabala/Xinhua)
Last week, in the market response to Argentina's primary election results, the peso devalued more than 20 percent against the U.S. dollar, aggravating an ongoing economic crisis that has ballooned the South American country's foreign debt.
BUENOS AIRES, Aug. 21 (Xinhua) -- The Argentine government is working to prevent any further rise in the exchange rate, newly-appointed Finance Minister Hernan Lacunza said on Wednesday, following last week's peso devaluation.
"We have the highest real exchange rate in 12 years, there is no reason to expect, or promote, an exchange rate hike," the minister said in an interview with the Argentine Radio Mitre.
"Since the rate is above the equilibrium exchange rate, it makes no sense to allow irrational speculation because that's what we have reserves for," said Lacunza.
Last week, in the market response to Argentina's primary election results, the peso devalued more than 20 percent against the U.S. dollar, aggravating an ongoing economic crisis that has ballooned the South American country's foreign debt.
As a weathercock for the general elections scheduled for October, the voting results prompted concerns about a change in the "pro-market" economic policies by the current administration of President Mauricio Macri.
Lacunza said he was meeting with the opposition's economic figures to discuss ways to calm investor fears and promote stability.
"Each candidate aspires to take power with his own project, but that can't be an excuse to threaten stability. We all have to be very prudent, very sensible and very aware that there is a higher common good and that is the well-being of the Argentine people," said Lacunza.
To boost the economy, the Argentine government has obtained loans in the biggest bailout ever approved by the International Monetary Fund (IMF).
In the next few days, the IMF is set to release another 5 billion U.S. dollars pending a review of public sector accounts, said Lacunza.
"I spoke with fund officials before taking office (on Tuesday). The (bailout) program is still in force," said the minister, whose predecessor Nicolas Dujovne quit after the primary election results sparked differences on how the government should handle the crisis.
Dujovne resigned on Saturday, saying he wanted to continue belt-tightening policies, while President Macri, who is seeking reelection, wanted to make concessions to voters unhappy with his government's austerity measures.
