August 12, 2019 / 4:27 PM / a month ago

Argentine central bank uses $50 million in reserves to defend the peso

FILE PHOTO: A man shows Argentine pesos outside a bank in Buenos Aires' financial district, Argentina August 30, 2018. REUTERS/Marcos Brindicci

BUENOS AIRES (Reuters) - Argentina’s central bank used $50 million in its own reserves, for the first time since September last year, to intervene in the foreign exchange market and defend the peso in the face of a massive sell-off, traders said.

Dollar auctions by the bank over recent months had been carried out using funds from the treasury.

President Mauricio Macri’s poor performance in Sunday’s primary election sparked a 30% crash of the local currency on Monday, triggering concern on Wall Street that the central bank may strain its reserves with large-scale dollar sales.

Reporting by Hugh Bronstein; Editing by Tom Brown

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