Argentina peso hits new low

Protests against politicians are continuing

By the BBC's Tom Gibb

In Argentina, the peso has slipped to a record low amid gloomy predictions that the country's worst ever economic crisis will deepen further this year.

Until devaluation in January, the peso was tied to the US dollar at one-to-one for a decade. It has now slipped to 2.5 to the dollar.

President Eduardo Duhalde, who is Argentina's fifth leader since December, is desperately trying to negotiate a restoration of IMF aid to reverse a four-year recession.

President Duhalde says that without IMF help in the next month, Argentina faces a return to the rioting and unrest which left 27 people dead and toppled former President de la Rua in December.

Frightening figures

The statistics paint a frightening picture of Argentina's continued decline.

Duhalde says IMF help is vital

Nearly half the population now live below the poverty line, unable to pay for basics like food, rent and essential services.

More than 20% are officially unemployed, and unofficial estimates are higher.

The IMF is now predicting the economy will shrink by another 8% this year, which means more companies closing and more job cuts.

IMF officials, while welcoming some changes in Argentina, have also warned the government to stop printing money.

The government, which is still running a deficit, is printing billions of pesos to try to pay its workers.

So are provincial governments - there are now 14 different local bonds or currencies in circulation.

Death threats

An annexe of Congress has had to be boarded up with metal sheets to protect those inside from angry protestors, some threatening to kill politicians.

Many banks have done the same.

Politicians on the street have also been attacked and abused.

But the IMF, under criticism in the United States that it bailed out Argentina for too long, shows no signs of restoring aid until there is evidence that the government's policies can lead to a sustained recovery.