Argentina to Sell as Much as $7.5 Billion From IMF in FX Market
Argentina plans to sell as much as $7.5 billion in the foreign exchange market to support budget expenditures once it gets access to a credit line from the International Monetary Fund.
The central bank will conduct daily auctions on behalf of the Treasury to sell the dollars, the finance ministry said. In a separate statement, the IMF confirmed the amount and said its executive board will vote on the $50 billion stand-by arrangement with Argentina on June 20. The peso gained as much as 0.7 percent on the news. It was 0.4 percent stronger at 25.64 per dollar at 11:24 a.m. local time.
Argentina’s economic plan “creates a solid basis for the $50 billion stand-by arrangement,” IMF Managing Director Christine Lagarde said in the statement. “The plan will also help reinforce Argentina’s institutional framework. For example, it has measures to improve the medium-term budget process and to ensure central bank independence.”