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A senior official of the Argentine government said that a Chinese bank deliberately lowered the exchange rate of the Argentine peso on Monday (September 1), taking advantage of the lack of liquidity in the foreign exchange market that day.
According to Bloomberg, Argentine Finance Minister Kilno said in an interview with local television station A24: "On Monday, in just two hours with a transaction volume of 30 million US dollars (38.65 million Singapore dollars), a Chinese bank attempted to push up the US dollar exchange rate, causing the peso to fall 40 points against the US dollar in a very small transaction volume... This situation occurred due to insufficient market liquidity.
The trading volume in the Argentine foreign exchange market decreased on Monday, which is a common situation during US holidays, and the peso fell 2.7% that day.
Prior to a crucial election on Sunday (7th), President Millet faced a series of political and economic setbacks, leading to a significant drop in Argentine assets. The Argentine government announced on Tuesday morning (2nd) that the Ministry of Finance will begin intervening in the foreign exchange market to maintain "liquidity and normal operation".
Currently, there are two Chinese banks operating in Argentina, namely Industrial and Commercial Bank of China and Bank of China.
A spokesperson for the Industrial and Commercial Bank of China's press office in Buenos Aires said that ICBC has been operating in Argentina in accordance with laws and regulations for many years and will continue to support Argentina's growth. Bank of China did not immediately respond to a request for comment.
Kilno also pointed out that this is not the first time that banks have intentionally suppressed the Argentine peso. Last year, one of the banks exercised a put option with the intention of harming our interests |
