Argentina in State of Financial Stress

BUENOS AIRES, Argentina?His hands tied by an economy near collapse, Argentina’s finance minister deeply devalued its currency as the country braced for an era of uncertainty in which one peso will no longer buy $1.

Overriding the worries of foreign investors and citizens alike, Economy Minister Jorge Remes Lenicov broke the news late Sunday that “one-to one”?as the dollar-peso rate was known?is history.

“We are devaluing, we are in collapse, Argentina is bankrupt,” Remes Lenicov said bluntly, announcing the erosion of a currency long the most stable in Latin America?until a run on the banks last Nov. 30 saw Argentines yank $2 billion in a day. The rioting and looting that followed forced President Fernando de la Rua from office and brought on a series of interim leaders.

Remes Lenicov said an official rate of 1.4 pesos per dollar would be applied to exports and imports.