![]() ![]() Guzmán, who was seen as a close ally of the president, resigned Saturday with a seven-page letter posted on Twitter at a time of tension in the governing coalition about how to deal with the economic problems gripping the country. "More inflation is on the way," Buscaglia predicted, saying the appointment of Batakis indicates that the policy preferences of the left-leaning vice president are predominating in the government.įernández, who herself was Argentina's president in 2007-2015 and continues to hold a strong base of support, has publicly criticized austerity efforts meant to try to tame inflation. "This is what we expected, a pretty strong reaction from the markets," said Marcos Buscaglia, an economist who is a partner at local consulting firm Alberdi Partners.Īrgentines crowded into stores over the weekend to buy big ticket items like refrigerators and ovens. "These are prices that must be taken with a grain of salt today," said Gustavo Ber, an economist who heads local consultancy Estudio Ber.īut others said it was a signal that after serveral economic crashes in recent decades, Argentines are worried that inflation already running at an annual rate of 60% will worsen under Batakis, who was sworn in late Monday afternoon. Some analysts cautioned it was too early to say if the peso is at a new low because trading activity was very light Monday, indicating that many people might be taking a wait-and-see attitude. dollars and the exchange rate is closely followed as a general barometer for the economy. The historic volatility of the peso means Argentines largely save in U.S. Prices for government bonds plunged as much as 10%, signaling fears of worsening inflation, while stocks also saw declines. The peso's value was down 18% at one point in the informal market Monday, reaching 280 per dollar, before recovering some late in the day. Guzmán had been the target of strong criticism from more left-leaning elements of the governing coalition, including Vice President Cristina Fernández, who is not related to the president. ![]() BUENOS AIRES, Argentina - Argentina's peso fell and stock prices dipped Monday after left-leaning Silvina Batakis was named economy minister following the surprise resignation of her more moderate predecessor over the weekend as the country struggles with economic woes.īatakis was named late Sunday to take over from Martín Guzmán, who was largely seen as a moderate voice within President Alberto Fernández's Cabinet.
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