Argentina's Peso Devalued by 50% in Shocking Austerity Move

Argentina's government allowed the peso currency to devalue over 50% to 801 per dollar as part of President Javier Milei's plans to revive the struggling economy. The devaluation is accompanied by measures such as cutting energy subsidies, reducing the size of government, and halting public works tenders to eliminate the deficit. The move was cautiously welcomed by markets, with international sovereign dollar bonds and U.S.-listed shares of Argentine firms experiencing mixed reactions. The IMF praised the changes, while analysts warned of potential challenges such as inflation and recession. The central bank will maintain interest rates at 133% and implement a monthly 2% devaluation path for the peso.