# Argentina devalues peso, raises rates after shock primary vote | Reuters

> Argentina's central bank devalued the peso by about 22% and raised its key interest rate by 21 percentage points to 118% a day after a shock primary election result favoring libertarian candidate Javier Milei. Foreign exchange trade had shriveled and bond markets were under strain. Investment banks warned the financial outlook would worsen without a broader exchange rate plan.

- Date: 2023-08-14 · published 2023-08-14T12:00:00.000Z
- Category: macro · region Argentina · magnitude medium
- Page: https://feedsoft.ai/events/34874-argentina-devalues-peso-raises-rates-after-shock-primary-vote-reuters
- Commodities: [Argentine Peso (ARS per USD)](https://feedsoft.ai/c/USDARS.md)

## Why it matters

A sharp peso devaluation raises the peso cost of the dollar and can push Argentine oilseed and meal exporters to sell more product abroad, which weighs on global soymeal and soyoil prices. Continued currency instability adds uncertainty to Argentine export flows.

## Read by commodity

- USDARS: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/argentina-markets-face-election-hangover-after-far-right-primary-bombshell-2023-08-14/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.