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LatinNews Regional Monitor: Brazil & Southern Cone - 13 March 2019

In brief: Argentina

*Argentina’s central bank (BCRA) has increased the interest rate of its short-term ‘liquidity notes’ (Leliqs) to 62.54%, up from 50.5% at the start of the week, as it attempts to prop up the peso, which continues to depreciate in value against the US dollar. This is the eighth time that BCRA has decided to increase the Leliq interest rate since 27 February when the value of the peso began falling sharply against the dollar and broke the Ar$43/US$1 threshold. The current Leliq rate is much higher than the February consensus market forecast, which predicted that it would stand at around 50% in March.