Argentine peso stable in opening trades

Buenos Aires (AFP) –


The Argentine peso appeared to have stabilized Monday, trading unchanged from last week at 22.28 to the dollar, after a run on the currency last week prompted the central bank to intervene.

The central bank raised its key interest rate to 40 percent, which lifted the peso's value 4.58 percent Friday after a 7.64 percent drop the day before.

It also reduced banks' dollar reserve requirements, a measure that goes into effect Monday and should release millions of dollars into the currency market.

To halt the peso's slide last week, the central bank had to sell some $8 billion from its reserves, which by Friday had fallen to $54 billion.

The turbulence in Argentina's currency markets was the most severe since President Mauricio Macri assumed office in December 2015.