Argentina to lift controls and allow dollar purchases after peso crash

A crackdown on illegal currency exchanges saw the peso collapse by around 12.5 per cent yesterday, to around $0.125.

Now the Argentinian government is to lift currency controls, and allow dollar purchases from 27 January after the currency hit an "acceptable" level.

Yesterday Johns Hopkins professor Steve Hanke, former adviser to Argentine economy minister Domingo Cavallo and a former president of Toronto Trust Argentina, told City A.M. that the "implied inflation rate in Argentina is about 75 per cent".

That's much higher than the official figure of 10 per cent.