- Title: ARGENTINA: ARGENTINE GOVERNMENT ANNOUNCES DEVALUATION OF ITS PESO CURRENCY
- Date: 6th January 2002
- Summary: (W1)BUENOS AIRES, ARGENTINA (JANUARY 6, 2002) (REUTERS - ACCESS ALL) 1. VARIOUS OF EXTERIOR OF ARGENTINE CONGRESS WITH POLICE (2 SHOTS) 0.08 2. VARIOUS OF SENATE VOTING ON NEW ECONOMIC MEASURES (5 SHOTS) 0.25 3. WS: EXTERIOR OF PRESIDENCIAL PALACE "CASA ROSADA" AT NIGHT 0.29 4. VARIOUS OF ECONOMY MINISTER JORGE REMES LENICOV ENTERING ROOM FOR NEWS CONFERENCE (2 SHOTS) 0.41 5. SCU: (SOUNDBITE) (Spanish) LENICOV SAYING: "The law that we just passed is a law that will give us a formal way out of the convertibility law, and I say formal, because - weeks ago - the government of (former) President (Fernando) De la Rua had already moved away from it." 0.59 6. WIDE OF LENICOV AT PODIUM 1.03 7. SCU: (SOUNDBITE) (Spanish) LENICOV SAYING: "We were carrying out different studies related to the composition of our commerce. The new exchange rate of the peso will 1.40 to the dollar." 1.19 8. SLV: JOURNALISTS 1.22 9. SCU: (SOUNDBITE) (Spanish) LENICOV SAYING: "We are going to start renegotiating the foreign debt at the beginning of February, as well as the relationship with the various international credit organisms. But before, we want to define, based on our knowledge and understanding of the economics, what would adapt best to our necessities." 1.51 10. VARIOUS OF BANKS AND PEOPLE TAKING MONEY FROM BANK MACHINES (3 SHOTS) 2.05 11. WS/SV: EXTERIOR OF FAMILY LEAVING BANK (2 SHOTS) 2.14 12. SV/CU: EXTERIOR OF EXCHANGE BUREAU WITH ADVERTISE THAT SAYS: "DOLLAR 1.40" (2 SHOTS) 2.24 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 21st January 2002 12:00
- Location: BUENOS AIRES, ARGENTINA
- Country: Argentina
- Reuters ID: LVA5NOY2QNJAMJN43575C5QP5U1T
- Story Text: The Argentine government has announced it is devaluing
its peso currency to a fixed rate of 1.40 to the U.S. dollar
from the decade-old one-to-one rate -- a devaluation of about
28.5 per cent.
The new Argentine government announced on Sunday
(January 6) that it could float the peso within "four or five
months" and expects a non-official peso to float freely on
markets and trade at levels similar to the official peso.
"We were carrying out different studies related to the
composition of our commerce," Economy Minister Jorge Remes
Lenicov said. "The new exchange rate of the peso will 1.40 to
Lenicov added that the International Monetary Fund had
recommended floating the peso immediately and that the
government would renegotiate it's foreign debt.
"We are going to start renegotiating the foreign debt at
the beginning of February, as well as the relationship with
the various international credit organisms," Lenicov said.
"But before, we want to define, based on our knowledge and
understanding of the economics, what would adapt best to our
necessities," he added.
Argentina will reopen its foreign exchange markets on
Wednesday (January 9) after suspending them for nearly three
weeks after the government of ex-president Fernando de la Rua
was toppled during bloody riots and looting that left 27 dead.
The Argentine Congress on Sunday approved emergency powers
that the government had sought to implement its emergency plan
to save the economy from meltdown amid a four-year recession,
which enables it to implement a devaluation.
The government may also offset losses incurred to banks
through the devaluation with bonds guaranteed by fuel exports,
and plans to turn dollar utility tariffs into pesos at parity
and abandon dollar indexing, Lenicov added.
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