Argentina devalued the peso ____ 54 percent and announced a ____ of ____ as the first steps of President Javier Milei’s shock-therapy programme to revive the nation’s ____. The newly ____ administration weakened the official exchange rate to 800 pesos ____ dollar, Economy Minister Luis Caputo said in a televised address after the close of local markets on Tuesday. “There is no more money,” Caputo said repeatedly in the recorded video, adding that Argentina needs to solve its “addiction” to ____. Other measures announced including ____ the number of ____, cutting ____ to provinces and suspending public works. The government will also reduce subsidies on transport and energy sectors, among others. At the same time, Argentina will ____ certain social welfare programmes, Caputo said. The dramatic first steps follow a somber ____ on Sunday, when Milei warned that Argentines will have to ____ months of pain while he works to ____ the country from the economic crisis inherited from his predecessor. Inflation is already ____ more than 140 percent annually, and prices are expected to ____ between 20 percent and 40 percent in the months to come, the president said. The government had closed Argentina’s ____ Monday, a technical step that often ____ a currency devaluation or major policy change. The Central Bank also announced Monday the official ____ would operate with limited transactions — a ____ it said it will ____ on Wednesday. The devaluation was long seen as inevitable. ____ Milei’s inauguration, markets were signalling ____ about 27 percent in the first week of the new government, while investment banks like JPMorgan Chase & Co and local private advisory firms suggested it could ____ about 44 percent. Grocers had already increased prices and banks were offering ____ weaker ____ hours before the Tuesday announcement. Argentine authorities have for years ____ the peso’s decline in the official market through ____ and ____ in an attempt to protect ____ reserves. That hodgepodge of capital controls has ____ at least a dozen exchange rates, hampering business and restricting investment in South America’s second-largest economy. On the campaign trail, Milei pledged ____ the currency altogether, replacing it with the US dollar. On December 7, the prior administration had let the peso ____ ____ about five percent, while simultaneously limiting the amount of ____ banks could hold in order to prevent them from ____ dollars. The government had been ____ to keep the currency largely ____ ____ 350 per dollar since the August primary vote, when Milei’s surprise showing ____. In parallel markets, that rate is about 1,000 Since being spooked by MIlei's emergence in the August primary, investors have ____ on the firebrand libertarian, cheering on his first steps as president-elect — namely, his decision to pick Wall Street veterans for some of the main cabinet positions while distancing himself from more ____ including dollarising the economy and ____ the Central Bank. As he begins his four-year ____, the rally will be ____. Caputo previously ____ finance chief in the administration of Mauricio Macri, when he negotiated a US$16.5-billion deal with ____ bondholders, allowing Argentina to return to international capital markets. Amid a currency run in 2018, Macri ____ him to take over at the central bank, but he only served for a few months before unexpectedly ____ amid tensions with the International Monetary Fund.

B2 C1 Argentina devalues peso by 54% (DEC 2023)

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