Argentina Devalues Currency by 50% as Part of Shock Economic Measures

Argentina Devalues Currency by 50% as Part of Shock Economic Measures

Argentina Devalues Currency by 50% , as Part of Shock Economic Measures.

In a televised message on Dec.

12, Argentina's economy minister, Luis Caputo, said that the country's peso will lose its value by 50%.

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Instead of 400 pesos amounting to one U.S. dollar, 800 pesos will now compare to one American dollar.

For few months, we're going to be worse than before, Luis Caputo, Argentina's economy minister, via statement.

If we continue as we are, we are inevitably heading towards hyperinflation.

Our mission is to avoid a catastrophe, Luis Caputo, Argentina's economy minister, via statement.

News of the devalued currency comes two days after Javier Milei was sworn in as president.

Other measures that will be taken include "cuts to energy and transportation subsidies," the cancellation of public works projects and "cutting some state jobs," CBS News reports.

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In addition to suffering 143% yearly inflation, Argentina has a $43 billion trade deficit and owes the International Monetary Fund (IMF) $45 billion.

Four out of 10 Argentines are impoverished, CBS News reports.

Four out of 10 Argentines are impoverished, CBS News reports.

The IMF commented about Argentina's plan.

These bold initial actions aim to significantly improve public finances in a manner that protects the most vulnerable in society and strengthen the foreign exchange regime, IMF spokesperson Julie Kozack, via statement.

Their decisive implementation will help stabilize the economy and set the basis for more sustainable and private-sector led growth, IMF spokesperson Julie Kozack, via statement