LatinNews Daily - 26 October 2020

* Argentina’s economy minister, Martín Guzmán, has announced that the government will not devalue its currency, saying “the depreciation of the [Argentine] peso against the [US] dollar due to inflation will continue as it has until now”. In a radio interview, Guzmán denied accounts that the government would have to devalue by the end of 2020, saying “we have the conditions to continue with the foreign exchange policy … and we are dedicated to stabilising the economy”, adding that the real economy is showing signs of recovery. Guzmán recognised the problems caused by the widening gap between the official exchange rate and the black market rate, which reached 143% on 22 October, but noted that Argentina’s trade surplus, its lack of impending debt repayments, current capital controls, and the levels of foreign reserves (which he cited as totalling US$41bn) allow for the government to maintain its current foreign exchange policy.

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