Argentina Hikes Interest Rate to 60%; Peso Plunges

© Reuters. Argentina Hikes Interest Rate to 60%; Peso Plunges

(Bloomberg) — Argentina’s central bank on Thursday raised its benchmark interest by 15 percentage points to 60 percent, the highest in the world, after the peso plummeted to a new record low.

The move comes one day after President Mauricio Macri announced he had requested the International Monetary Fund to speed up disbursements from a $50 billion credit line, in order to demonstrate the country had enough cash on hand to fund the 2019 budget without going further into debt.

Earlier on Thursday the fell to a fresh record low of 40.00 per U.S. dollar. It pared some of its declines following the central bank announcement. The peso is down 49 percent this year.

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