Argentina is facing tough economic measures. People in the streets of the capital, Buenos Aires,?
Argentina is facing tough economic measures. People in the streets of the capital, Buenos Aires, were shocked when they heard the news that their peso was to be devalued by fifty per cent.
President Maria Peron announced the measures in speech which was sent out on the radio stations. The devaluation means there are now only 15, not 30 pesos to the U.S. dollar.
The prices of petrol, electricity and gas were also sharply increased. President Peron described Argentina as a sick nation economically. She decreed a 65 per cent increase in basic wages to offset huge price increases triggered by the devaluation.
Basic food prices have all gone up. The country's powerful trade unions have broken off talks on separate wage deals with employers' representatives until workers feel the full effect of the price increases.
Opposition politicians intend to summon the new economy minister, Celestino Rodrigo, to explain the tough measures.