ARGENTINA CUTS SOME OF HER EXCHANGE RATES

Greymouth Evening Star, 4 October 1949, Page 5

ARGENTINA CUTS SOME OF HER EXCHANGE RATES

I BUENOS’AIRES,,October 3 (Rec. 1 11,10 a.m.).— Argentina today reduced some of her exchange rates by 46 per cent. The new rates apply to the transfer of money for travellers, ' profits and certain services. The effect isS to make the dollar bring 84.6 per cent, more in pesos. The rate was' fixed at nine pesos to the dollar, compared with' the old rate of 4.87.)

pesos. The peso was devalued to 25.2 to the British pound, instead of the old I'cite of 19 37 Argentina also suspended all imports, at least temporarily. The Central Bank put into effect the reshuffled exchange rate. It also issued a list of items which can be imported, but said the method of applying for import permits will be announced later. There was no immediate indication of when this would be done.. The new schedule of exchange rates requires Britain' and other countries which have cheapened their currencies to pay more for what they buy in Argentina. In some cases they will give more pesos for dollar purchases, which will make prices cheaper for those who can pay with dollars.

' The new exchange rates announced are “free” market rates. The Government froze <the prices of prime necessities to all Argentine households, according to schedules announced today by the Central Bank. The old rate paid by Britain for meat will not. be altered.

The price for 1949 was fixed in sterling at 97.536 sterling per long ton. The price for 1950, however, will be subject to negotiation, which, it was agreed, should be conducted if the sterling were devalued. The meat price for 1949 was the only one fixed during the British-Argentina trade negotiations. . The price paid by Britain for other food or feeding stuffs will presumably cost more, depending on the rate adopted for the particular commodity.