Time to panic (if you’re the IMF). $50 billion credit line not enough to stop Argentine Peso from breaking 26.

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Just a few short days after agreeing a record bailout by The IMF, Argentina’s currency is back in freefall,collapsing to more than 26 pesos per dollar as Argentine truckers plan a national strike on Thursday that investors fear will push the government to fold on reforms… and growing anxiety over BRCA’s decision.

Companies rejected demand for 27% wage increases from truck drivers, Hugo Moyano, leader of the nation’s truckers union, says in press conference, confirming plans for a nationwide strike on Thursday.

Additionally, it appears BCRA’s decision to withdraw its USD5b daily offer shook the FX market. The central bank was absent from the market on Friday and the peso had its biggest drop in two weeks. BCRA decides monetary policy tomorrow, in first meeting after government and International Monetary Fund agreement.

This is the biggest drop in the peso in over a month…


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