The Argentine government announced it will loosen strict foreign exchange controls, as the peso suffered sharp falls against the US dollar.
Jorge Capitanich (left) and Economy Minister Axel Kicillof. Photo: AFP / PRENSA JEFATURA DE GABINETE / Ricardo Ceppi
From Monday, the country would reduce the tax rate on dollar purchases and allow the purchase of dollars for savings accounts.
The central bank had been acting to support the waning currency amid a loss of investor confidence in the country.
But the bank abandoned this policy on Thursday, sparking the peso's 11% fall against the dollar, its steepest drop since the country's 2002 financial crisis.
Despite efforts to support the economy, inflation has soared and many analysts expect it to reach about 30% this year, the BBC reports.
Cabinet chief Jorge Capitanich said the government would cut the tax rate on dollar purchases to 20% from the current 35%.
Concerns about Argentina hit financial markets around the world amid worries that other emerging economies are struggling. The currencies of Turkey, Russia, South Africa, and Mexico fell against the dollar.