Argentina's New Treasury Minister Sets Currency Stabilization As Primary Task

New Argentine Treasury Minister Hernan Lacunza said on Tuesday that stabilizing the national currency, which recently took a dive following primaries, would be his first priority

BUENOS AIRES (UrduPoint News / Sputnik - 20th August, 2019) New Argentine Treasury Minister Hernan Lacunza said on Tuesday that stabilizing the national currency, which recently took a dive following primaries, would be his first priority.

Argentina's economy went into shock last week after center-left opposition presidential candidate Alberto Fernandez won the primaries over center-right incumbent Mauricio Macri. The national currency has been in free fall since the results were announced and on Monday dropped to 65 Argentine pesos against the US Dollar. The national stock market also dropped 38 percent, reaching a historic low.

"The Primary task is to stabilize the exchange rate in this pre-election period because we understand that under uncertain conditions, stability is the most important thing that the [treasury] ministry should offer," Lacunza said.

According to the minister, the government is primarily concerned about the fact that a third of all Argentines have been unable to overcome poverty for decades now.

"Currency rate stabilization is the best we can do for families. We have enough reasons to assume that the exchange rate significantly exceeds its equilibrium value. No need for a higher exchange rate. Any sort of pressure [on the rate] will be caused not by authentic triggers but by ones that are speculative, unnecessary and harmful for the economy," Lacunza added.

Lacunza's predecessor Nicolas Dujovne resigned on Saturday following the shocking results of the primaries, saying that Argentina needed "a significant renewal" of its economy. The presidential election is for October.