Argentina's currency is slightly weaker as the government opens banks and exchange houses for the first time in more than a week, allowing depositors to withdraw at least some of their money. 

The peso, which was allowed to trade freely Monday, has fallen about three percent, to 3.25 pesos to the dollar. The central bank is hoping that depositors will not withdraw money by continuing to buy dollars, which could further hurt the peso's value. 

The central bank ordered banks to shut their doors April 19 to avert a run on the banks. Argentina's congress approved legislation last Thursday making it more difficult for bank customers to withdraw money. 

Meanwhile, the financial newspaper La Nacion, citing Economy Minister Roberto Lavagna, reported Monday that Argentina would meet more than $1 billion in loan payments due in May on World Bank and IMF loans, even if the country does not obtain new aid from the Bank and the Fund. The newspaper said Argentina may ask Brazil, Mexico and other countries for loans to make the payments. 

Argentina's financial crisis is hurting the biggest Spanish bank, Santander, which reported Monday first quarter profits fell short of expectations because of its exposure in Argentina. 

Some information for this report provided by AFP and Bloomberg.

Email this article to a friend.
Printer Friendly Version