The Argentine peso has closed stronger than expected on the first day in 11 years it freely floated on currency exchange markets

In early trading Monday, the currency fell to two-point-30 to the U.S. dollar, but rebounded to end the day near two pesos.

Argentines waited in long lines at currency houses in Buenos Aires to sell pesos and buy U.S. dollars. This comes 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 dollars in international reserves. Bank officials say they are optimistic the peso will stabilize in the coming weeks.

The floating peso is seen as key for Argentina to obtain additional aid from the International Monetary Fund. Argentine officials are expected to hold talks with I-M-F officials this week in Washington.

The South American nation has defaulted on its 141-billion-dollar debt, and officials are reportedly seeking up to 25-billion dollars in I-M-F aid.

(bbg, afp, ap, rodgers-crs, prev)

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