Argentina devalues peso and cuts spending

STORY: Argentina on Tuesday said it is devaluing its currency, the peso, by over a half. It's part of a series of measures coming days after new libertarian president Javier Milei assumed office that his government says aim to salvage the country's deteriorating economy. Other measures include cutting energy and transport subsidies, as well as a halt to seeking contracts for public works. New Economy Minister Luis Caputo: "As I said before, there is no money to pay for more public infrastructure, which, as we all know, often ends up in the pockets of politicians and business people. Public works have always been one of the main sources of state corruption and with us that will end." Caputo said the plan would be painful in the short term but was necessary to cut the fiscal deficit and bring down triple-digit inflation. He added Argentina had recorded a fiscal deficit for 113 of the last 123 years – which he said was the cause of the country's economic woes. Its latest inflation rate stands at nearly 150 percent. The economic package was welcomed by the International Monetary Fund, which loaned Argentina $44 billion last year. Now the key doubt is whether Milei’s coalition, which is only the third largest bloc in Congress, can implement the ambitious cuts. Credit rating company Fitch said in a Monday commentary that Milei’s party has little representation in the legislature, adding alliances with more influential parties remain in flux.