Argentinean President Mauricio Macri announced Tuesday that talks would soon begin with the International Monetary Fund (IMF) to seek "a line of financial assistance," due to the devaluation of the Argentinean peso against the U.S. dollar, Xinhua reported.
The president said Argentina was going down "the only path possible to exit stagnation and avoid a major economic crisis that would ... hurt us all."
"Facing this new international situation, and in a preventive manner, I have decided to begin talks with the IMF to grant us a line of financial assistance. Director Christine Lagarde confirmed that we would begin working today for an agreement," said Macri in a statement.
Argentina has had a tempestuous relationship in the past with the IMF. In 2006, former president Nestor Kirchner cancelled a payment to the IMF concerning a debt of 9.81 billion U.S. dollars and did not seek assistance from the institution until now.
In his address, Macri defended his economic program, pointing to improved inflation and reduced fiscal deficit.
On Tuesday, the peso was trading at 23.03 to 1 U.S. dollar, after closing Monday at 22.33.
The central bank has been racing to prevent a further decline but decided to hold its key interest rate at 40 percent on Tuesday, a move interpreted by the market as showing stability.
On Monday, the central bank did not emit dollars from its reserves in another effort to halt the slide.
The Ministry of Finance also announced it would be emitting new treasury bonds after the strong climb of the American currency.