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LatinNews Daily - 12 November 2020

In brief: Fiscal and currency stabilisation efforts continue in Argentina

*Argentina’s economy ministry has reported that it has successfully placed Ar$70.5bn (US$832.5m) worth of treasury bonds in the local financial market. This was the third of the five debt issue operations that the government announced it would conduct this month as part of its plans to raise funds to meet government spending commitments and at the same time help stabilise the exchange rate. The Argentine government remains short of cash due to its high levels of external debt and low levels of revenues amid a three-year long economic recession. There are also excess pesos in the economy as the government had been resorting to the issuing of currency to maintain liquidity, which further depressed the value of the peso compared to the US dollar. The government is seeking to address these issues through the issuing of peso-denominated domestic debt to simultaneously raise funds and reduce the supply of pesos. A ministerial statement said that the latest bonds maturing between April and March 2022 was a success and that the government’s goal is to continue using this strategy to reduce the value of the public debt until the end of the year.  

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