Argentina ’ s central bank boss quits
Argentina’s currency crisis deepened yesterday when the country’s central bank chief resigned three months into the job.
The peso fell by 5 per cent against the dollar after it was announced that Luis Caputo had resigned for personal reasons, as bailout talks continued between Argentina and the International Monetary Fund.
Last night Nicolas Dujovne, Argentina’s economy minister, said he hoped a deal for an additional $3 billion to $5 billion from the IMF would be announced today.
The value of the peso has fallen by about half this year. The trigger appears to have been the decision of Argentina’s central bank in January to cut interest rates and to increase its inflation target. This spooked foreign investors.
Argentina’s central bank has tried and failed to prop up the falling peso by selling a chunk of its foreign currency reserves, and by raising interest rates to 60 per cent. President Macri was forced to go to the IMF in May, asking for a $50 billion bailout that was agreed in June.
Mr Caputo will be replaced by Guido Sandleris, an economist who has worked for the IMF.