Argentine official denies devaluation planned - WAOW - Newsline 9, Wausau News, Weather, Sports

Argentine official denies devaluation planned

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BUENOS AIRES, Argentina (AP) -

A top Argentine official says the government has no plans to devalue the peso, close down bank accounts or otherwise change the country's financial system.

Argentina's economy is under increasing pressure as soaring inflation and currency controls slow investment. Rumors are flying in Buenos Aires that the government will soon take drastic action.

Argentines have long traded their pesos for dollars as an inflation hedge, and the government is cracking down black market trading to stem capital flight.

Deputy Economy Minister Axel Kicillof said Friday he won't drop any "atomic bomb." He accused the news media of stirring up rumors to create panic and force a devaluation so that a small minority of tax-evading elites can make big profits.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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