Argentina Unveils ‘Emergency’ Austerity Measures, Grain Export Taxes to Balance Budget

A buy-sell board of a bureau de exchange is seen as outsourced government workers protest against layoffs in Buenos Aires's downtown, on September 3, 2018. - Argentina's president Mauricio Macri announced austerity measures, including the elimination of government ministries and stiff taxes on exports to reduce budget deficits and stabilize the economy in Buenos Aires. The Argentinian peso has lost half its value against the dollar since January. A first $15 billion tranche of an IMF loan has largely gone to propping up the peso in recent months. Argentina's Central Bank hiked its baseline interest rate to 60 percent last week in a further bid to stabilize the currency (Photo by Juan Mabromata / AFP) / The erroneous mention[s] appearing in the metadata of this photo by Juan Mabromata has been modified in AFP systems in the following manner: "A buy-sell board of a bureau de exchange is seen as outsourced government workers protest against layoffs in Buenos Aires's downtown, on September 3, 2018" instead of "Demonstrators protesting against the economic policies of the government walk past in front of a bureau de exchange in Buenos Aires, on September 3, 2018". Please immediately remove the erroneous mention from all your online services and delete them from your servers. If you have been authorized by AFP to distribute them to third parties, please ensure that the same actions are carried out by them. Failure to promptly comply with these instructions will entail liability on your part for any continued or post notification usage. Therefore we thank you very much for all your attention and prompt action. We are sorry for the inconvenience this notification may cause and remain at your disposal for any further information you may require. Photo credit should read JUAN MABROMATA/AFP/Getty Images

BUENOS AIRES—President Mauricio Macri on Sept. 3 announced new taxes on exports in the world’s third-biggest soy producer and steep cuts to government spending in an “emergency” bid to balance next year’s budget as his center-right government aims to persuade the IMF to accelerate a $50 billion loan program.

The new austerity measures, announced by Macri and Finance Minister Nicolas Dujovne, were prompted by a 16 percent slide in the value of Argentina’s peso last week, bringing the local currency’s losses to almost 50 percent against the dollar so far this year.