After pledging a free-floating currency a month ago, Argentina’s government has intervened in the market to influence the peso’s value, a move that stands in sharp contrast to its commitments to the International Monetary Fund. The Central Bank confirmed it sold US$409 million in futures contracts on April 30 – nearly 14 percent of total open interest reported that day on the local A3 futures market – confirming what many investors had been suspecting for weeks. Looking to stabilise the market, the Central Bank lowered implied rates and facilitated cheaper Treasury financings ahead of key debt auctions.
SOURCE: BUENOS AIRES TIMES