Argentina to Halve Exchange Rate of National Currency to Fight Crisis - Economy Minister

BUENOS AIRES (Sputnik) - Argentine Finance Minister Luis Caputo said Tuesday that Argentine authorities went for a serious devaluation of the national currency and will halve the exchange rate of the national currency, the peso, against the US dollar to tackle the crisis in the country.

"We will clarify the official exchange rate. [The US dollar] will be worth 800 pesos, [the increase] will be accompanied by an increase in the Pais tax [on the use of this currency]," Caputo said in a video message.

According to the data of Argentine state bank Banco Nacion, the exchange rate of which is the benchmark for the market, the US dollar is worth 400.5 pesos when sold by the bank and 365.5 when bought.

Argentina has several exchange rates of its national currency against the US dollar, including the official exchange rate, black or illegal rate, the exchange rate for exporters, the financial market and tourist travel.

Caputo also announced other measures to tackle the economic crisis in the country, including transportation and energy subsidy cuts and strengthening of social support for the population in need.

"We will decrease subsidies for transport and energy, and the tariffs are artificially low now," he said, adding that the previous government deceived citizens by introducing subsidies, as these "subsidies are not free" and "citizens pay for them with inflation."

However, he did not specify the scale of the planned cuts.

The minister also announced that infrastructure projects in Argentina will be implemented by private businesses without government support.

"The government will no longer bid on new public works projects and will cancel the bidding results for those projects that have not yet been started. We do not have money to pay for public works, which in many cases fill the pockets of politicians and businessmen," he said.

Caputo added that infrastructure projects will be implemented at the expense of private business because Buenos Aires does not have the funds to complete them.