Argentina Peso Suffers Largest Daily Decline Since ’02 Crisis

Argentina’s exchange rate on Thursday suffered its steepest daily decline since the country’s devastating 2002 financial crisis, extending the previous day’s losses as the central bank gave up its battle against the peso’s decline.

Having shed more than 30 percent of its reserves last year, the central bank this week abandoned its policy of supporting the peso by intervening in the foreign exchange market.

The new policy set the stage for Thursday’s loss in the value of the currency and increased worries about what is already one of the world’s highest inflation rates.

CNBC

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