Argentina’s president wants funding from the global lender as a further buttress against inflation and a run on the peso. It could help make reforms stick and provide an outsider to blame. But the country’s history with the IMF means it might also dim Macri’s political prospects.
Argentine President Mauricio Macri speaks during an interview with Reuters in New York, NY, U.S. November 7, 2017.
Argentina is seeking a financing deal with the International Monetary Fund, President Mauricio Macri said on May 8, to address recent market volatility punctuated by the local peso plumbing new lows and the central bank jacking interest rates up to 40 percent.
"Just a few minutes ago I spoke with [IMF] Director Christine Lagarde, and she confirmed we would start working on an agreement today," Macri said in an address to the nation.
The peso was down about 2 percent at 22.40 per U.S. dollar after Macri spoke. Earlier in the day, it had slumped 6.5 percent to a new all-time low at 23.50 to the greenback.
The domestic Merval stock index, which started the day 5.3 percent lower, cut its losses later.