Comprehensive media reports, in order to save the precarious value of the peso and to combat inflation, the Central Bank of Argentina pulled the target interest rate up to 40% on 4 days, shaking the global financial market.
This is the Central Bank of Argentina in the past 8 days to raise interest rates third times, the interest rate rose from 27.25% to 40%, and the news stimulated the peso surged 5% against the US dollar, closing to 2.3%. However, the peso still fell 15% against the dollar this year, and the 4 day interest rate rose 300 basis points, which also hit a record low of 22.25 against the US $1.
Peso is not only a derogatory foreign patient and internal worry, but the foreign capital from the Union will raise interest rates to make a profit margin, and see the poor Argentina locals also hastened to sell the peso for the dollar. Argentina's overall economy is also very grim. In addition to slowing growth, the world's hottest inflation is currently growing at an annual rate of 25.4%.