A sign displaying U.S. dollar, euro, and Brazilian real exchange rates hangs outside of currency exchange house in Buenos Aires, Argentina. (Photographer: Sarah Pabst/Bloomberg)

Argentina Seeks More Financing With Peso Rout Deepening

(Bloomberg) -- Argentina is considering proposals for additional financing that may include swaps and credit lines, according to people who met with government officials in New York this week.

Deputy cabinet chief Mario Quintana, Central Bank Vice President Gustavo Canonero and Finance Secretary Santiago Bausili told investors they are reviewing proposals but declined to give details, according to people who met with them. The people asked not to be named because the talks are private.

Argentina’s central bank is said to be in talks with People’s Bank of China for a currency swap line, and to have considered a $5 billion repo line with banks as recently as two weeks ago, Bloomberg previously reported.

Argentina has taken a series of measures this week to support its currency and restore confidence in the economy. The central bank raised its key rate to 45 percent, boosted reserve requirements for banks and conducted a number of dollar auctions. Yet the peso remains near a record low, with the worst performance among emerging-market currencies this year.

President Mauricio Macri signed a record $50 billion credit line with the International Monetary Fund in June as the currency crisis boosted prices and pushed the economy to the brink of recession. An inflation spiral fueled by the continued depreciation of the peso remains as one of the main government concerns.

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