Offbeat Argentina's peso hits new low after $50 billion IMF deal

19:17  08 june  2018
19:17  08 june  2018 Source:   bloomberg.com

Messi grabs hat-trick as Argentina canter to 4-0 win

  Messi grabs hat-trick as Argentina canter to 4-0 win Argentina showed once again how reliant they are on Lionel Messi as the Barcelona forward scored a hat-trick in their 4-0 World Cup warm-up win over Haiti on Tuesday. With Javier Mascherano making his 143rd appearance to put him one ahead of Javier Zanetti as Argentina's most capped player, Messi got the opener from the penalty spot after 17 minutes. He doubled their lead 12 minutes into the second half with a simple tap-in after the goalkeeper could only parry a header, scored Argentina's third after 65 minutes, and then set up Sergio Aguero to make it four just two minutes later.

Argentina ' s peso has hit a new low against the US dollar, despite the government's efforts to shore up the economy. Protesters, meanwhile, took to the streets to denounce President Macri's plans to seek help from the IMF .

EMERGING MARKETS- Argentina seeks IMF deal as peso hits record low amid Iran fallout. Bloomberg News reported that Latin America's third-largest economy could get a billion loan from the IMF , lifting Argentina ' s currency from a record low .

Argentina’s central bank stepped back from defending the peso Friday after the country’s record deal Thursday with the International Monetary Fund.

The peso dropped 1.86 percent to 25.45 per dollar Friday morning from just under 25 per dollar the day before. The fall marks the end of three weeks of the central bank’s intervention in currency markets to stabilize the volatile peso. Since May 14, it had offered to sell $5 billion at 25 pesos per dollar. That offer, which was never executed, kept the peso steady amid IMF talks.

The IMF approved a $50 billion credit line to Argentina on Thursday, the largest lifeline in the Fund’s history. In exchange, Argentina agreed to cut its fiscal spending faster, give the central bank more independence and change its inflation targets. Argentine leaders sought out the IMF following a sharp selloff in the peso in May as global volatility and concerns about the central bank’s credibility boiled over.

Despite the peso’s decline on Friday, Argentine bonds rallied and the country’s U.S.-traded stocks rose at the market open, led by bank Grupo Supervielle, which gained as much as 8.4 percent.

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