Argentine peso on watch following end of currency controls

|By:, SA News Editor

Having slumped over 20% over recent days, the Argentinian peso could fall further today after the government said on Friday that it would end a two-year-old ban on Argentines buying foreign currency.

That will allow the country's citizens to purchase dollars, which they are obsessed with following crises such as the one in 2002. However, the Central Bank, the main source of foreign exchange, has reserves of less than $30B.

The government hopes the move will cause the official peso rate of $8 to converge with the black-market figure of $11.70.