Argentina’s banks and money exchanges will be...

Argentina’s banks and money exchanges will be closed today and Tuesday while the government implements a new anti-inflation economic package, Legislator Cesar Jaroslavsky, a member of the House of Deputies, announced as he left a meeting at the official residence of President Raul Alfonsin. Jaroslavsky refused to comment on the contents of the plan. Argentine officials met last week with International Monetary Fund officials in an effort to obtain new loans to help pay interest on the country’s $53 billion foreign debt. Inflation registered 321.7% over the last year ,the cost of living rose 18% in June and the increase for July is expected to exceed 20%. Buenos Aires newspapers speculated that the package will include a 10% devaluation of the austral, the national currency, modification of the two-tier exchange rate system and an increase in taxes on agricultural exports. They reported it also could involve a 22% to 26% increase in public utility and transport rates and a request for businesses to voluntarily limit price increases to 6% during this month.