# Explainer: Why crisis-hit Argentina is now trying to weaken its currency

> Argentina's central bank bought $190 million in foreign exchange over the past week to weaken the peso, after a run last year halved its value. The peso had strengthened past the limit of the IMF-agreed band, prompting five consecutive days of intervention.

- Date: 2019-01-18 · published 2019-01-18T12:00:00.000Z
- Category: macro · region Argentina · magnitude medium
- Page: https://feedsoft.ai/events/61368-explainer-why-crisis-hit-argentina-is-now-trying-to-weaken-its-currency
- Commodities: [Argentine Peso (ARS per USD)](https://feedsoft.ai/c/USDARS.md)

## Why it matters

A sustained policy push to weaken the peso raises the local-currency cost of dollar-priced imports for Argentina and adds volatility to its feed and grain export economics.

## Read by commodity

- USDARS: bullish ▲

## Sources

- business-standard.com: https://www.business-standard.com/article/reuters/explainer-why-crisis-hit-argentina-is-now-trying-to-weaken-its-currency-119011801180_1.html

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