Argentina's central bank chief resigns amid IMF bailout talks

 

  • The president of Argentina's central bank has resigned amid negotiations with the International Monetary Fund (IMF) to bail the South American country out of its volatile economic crisis. The resignation comes as President Mauricio Macriis negotiating additional IMF funding, three months after securing a $50bn loan from the international lender to stabilise Argentina's economy.

 

  • Argentina's weak economy has been hit by a sharp depreciation of its peso currency and high inflation, forcing the government to reach out to the IMF for help. After a crisis of confidence beginning in April saw the peso plunge, Argentina negotiated a $50bn bailout loan from the IMF that included an initial $15bn tranche in June.

 

  • The pesos is down  about 50% year to date. Macri responded by announcing new, and unpopular, austerity measures including halving the number of government ministries and restoring taxes on grain exports.  The central bank also hiked interest rates to a world-high 60 percent and the peso has remained largely stable since its sudden crash in August.

Source:  Aljazeera