|
Argentine Peso Closes Stronger Than Expected VOA News 12 Feb 2002 07:40 UTC 
The Argentine peso closed stronger than expected on Monday -- the first day in 11 years it has floated freely on currency exchange markets.
In early trading, the peso fell to 2.30 to the (U.S.) dollar, but it rebounded to end the day at just over two pesos to the dollar.
Argentines waited in long lines at currency houses in Buenos Aires to sell pesos and buy dollars -- after a week-long ban on foreign exchange trading. The move to float the currency comes after officials ended a dual exchange rate system established to cushion the impact of devaluing the peso last month.
Amid fears the currency would plummet, a presidential spokesman assured the nation Sunday the central bank had ample reserves to support the peso.
The Central Bank said last week it has around $14 billion in international reserves. Bank officials say they are optimistic the peso will stabilize in the coming weeks.
The floating peso is seen as key to Argentina's bid to obtain additional aid from the International Monetary Fund. Argentine officials are expected to hold talks with IMF officials this week in Washington.
The South American nation has defaulted on its $141 billion debt, and officials are reportedly seeking up to $25 billion in IMF aid.
Some information for this report provided by AP.
|