Argentina overcomes "exchange rate volatility," says president

BUENOS AIRES, May 16 (Xinhua) -- Argentina has overcome the "exchange rate volatility" that saw the peso plunge more than 15 percent against the U.S. dollar, President Mauricio Macri said on Wednesday.

"As the president of the central bank said, we consider the exchange rate volatility to be overcome," Macri told reporters at a press conference held at the presidential residence Olivos.

In the past two weeks, the national currency devalued 15.19 percent. It has devaluated a total of 32.14 percent since the start of this year.

The peso's plunge led the central bank to take measures in the past 24 hours, including an unexpected sale of fixed-rate long-term treasury bonds called Botes.

On Tuesday, the bank's offer of Botes raised 73.249 billion pesos (about 2.954 billion dollars.)

In addition, it succeeded in getting all holders of expired short-term debt bonds, valued at 617 billion pesos (24.889 billion dollars), to reinvest in the financial instruments.

Both moves prevented a further devaluation of the peso.

Macri also called on his economic team to analyze the country's situation and to figure out what the main problem is, though he admitted that "we are spending more than we have" and "it generates vulnerability."

Following weeks of currency devaluation that led the government to turn to the International Monetary Fund (IMF) for tens of billions of credit, Macri struck a note of confidence on Tuesday, calling for greater collaboration between the ruling party and the opposition for the good of the nation.

[ Editor: Xueying ]
 

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