Top Financial News
02/03 18:03 Argentina to Let Peso Float Against Dollar, Print 3.5 Bln Pesos By Helen Murphy Buenos Aires, Feb. 3 (Bloomberg) -- Argentina let its currency float against the dollar and will convert all bank deposits and loans into pesos in a bid to prevent a collapse of the financial system and get new international loans. President Eduardo Duhalde will issue a decree to turn all dollar loans into pesos at a rate of one-to-one and all dollar deposits at 1.4, Economy Minister Jorge Remes Lenicov said in televised news conference. The peso will float against the dollar, eliminating a dual exchange system that fixed the official rate of exchange at 1.4 pesos per dollar for trade while allowing the currency to trade freely at exchange houses. ``Argentina is bankrupt,'' Remes Lenicov said. ``These measures are designed to defend Argentines' savings, the production system and the financial system.'' The International Monetary Fund has called on Argentina to let its peso float before it will consider new economic assistance. Argentina is seeking as much as $20 billion in loans from the IMF and other international lenders to prop up the banking system and stabilize the economy. The government will also print $3.5 billion of pesos to finance Argentina's deficit. The president will allow account holders to withdraw their full salaries instead of a limit of 1,500 pesos, raising concern Argentines will rush to withdraw all their salaries immediately. The central Bank called a bank holiday on Monday and Tuesday.
