Argentina brokerage apologises after spreading devaluation rumour

Argentine brokerage Max Capital Valores said it “deeply regretted” spreading misinformation over a currency devaluation of the nation’s official exchange rate.

“We deeply regret having inadvertently participated in the dissemination of an unfounded rumor that does not represent the institutional opinion of the Max Capital Group,” the firm said Saturday in a statement posted to its LinkedIn page. “Its disclosure to local and foreign clients was the result of an involuntary error on the part of a company employee, who acted on their own account based on false rumours.”

Economy Minister Sergio Massa on Friday denied market speculation that President Alberto Fernández would resign and that the government would devalue its currency, according to a candid audio message Massa sent on WhatsApp to a group chat as the peso hit record lows.

Argentina is coming out of one of the worst weeks of market volatility this year. Higher-than-expected inflation sent the nation’s bonds to the lowest level this year, prompting the government to hike its key rate and implement new measures to protect dwindling international reserves. 

Earlier Friday, President Alberto Fernández said he wouldn’t run for re-election, upending a race within the ruling left-leaning Frente de Todos coalition to pick a candidate before October elections as it tries to slow annual inflation running at 104 percent.

Argentina’s parallel exchange rate, known as the blue-chip swap, lost 13 percent of its value this week, its worst period since a political crisis erupted last July. The parallel rate closed Friday near 455 pesos per dollar, way above the official rate at 219 per dollar which is controlled by the government.