The Argentina Peso rose by 3.2% yesterday as investors optimism about a new financing agreement with the International Monetary Fund aimed at guaranteeing government solvency. The local currency has lost about half of its value this year as investors worried about whether Argentina could meet its debt obligations next year.
An IMF spokesman said significant progress was being made in talks between the IMF and the Argentina government to strengthen the $ 50 billion agreement which signed in June.
The Peso sell-off began in May, driven by high inflation and uncertainty about the central bank's ability to pay its debts. Since then, the economy has been in recession with inflation hitting more than 34 percent in the 12 months to August.
Last month, the Argentina president had to renegotiate his government's deal with the International Monetary Fund, proposing policies aimed at wiping out the country's fiscal deficit next year in return for less money than planned by the International Monetary Fund.
