Market News & Headlines >> Argentina's New Government Devalues Peso

As expected, Argentina’s new government on Tuesday ordered a sharp devaluation of the peso as one of the first steps the economic “shock-therapy” program that new President Javier Milei promised in his inauguration address on Sunday.

Economic Minister Luis Caputo said in a televised message that the Argentine peso would be devalued by more than 50% to 800 pesos to the dollar.

Caputo also announced cuts to energy and transportation subsidies but did not specify the size of the cuts or offer any other details. As part of the new measures, Caputo also said the government is canceling tenders of any public works projects and cutting some state jobs to reduce the size of the government.

Argentina’s grains/oilseeds export sector was set to meet with the Milei administration late on Tuesday following the economic program announcement, according to Reuters News Service. The new government temporarily suspended new export license applications for grains and oilseeds until further notice late on Monday ahead of the economic announcements.