Argentine government reassures investors amid peso fall

BUENOS AIRES, Argentina (AP) — The Argentine government says the appointment of a new central bank chief is intended to generate confidence following a sharp depreciation of the peso.

On Thursday, Luis Caputo replaced former Central Bank President Federico Sturzenegger, who presented his resignation to President Mauricio Macri following weeks of currency volatility. The Argentine peso fell to a record low of 28.20 per dollar this week and has tumbled by 50 percent against the greenback this year.

Economy Minister Nicolas Dujovne told reporters Friday that “work is being done to normalize the foreign exchange market” and said that the president’s economic program would remain the same.

In June, Macri announced a three-year standby financing deal with the International Monetary Fund aimed at strengthening the economy amid double-digit inflation.