In a drastic move on Monday, Argentina's government devalued its currency, the peso, by almost 18% and also raised interest rates higher.
The move was taken as a government effort to calm the market following the surprise victory of right-wing libertarian Javier Milei as the final candidate for the October presidential election.
Milei has previously expressed his desire to replace the peso with the dollar, and said Argentina's Central Bank should be abolished.
Following the victory, the Argentine government continued to fix the value of the local currency at 350 pesos to the dollar until the October elections.
Following that, the central bank's main interest rate was also raised to 118% from 97% previously.
It is well known that Latin America's third largest economy has been mired in a severe economic and financial crisis for years.
The country's foreign reserves are rapidly depleting and inflation is predicted at 142.4% for this year.
Milei is the most vocal critic of corrupt politics, saying the country's leaders have caused a succession of crises.
He believes replacing the peso with the dollar can ease inflation, but many economists warn that it will trigger financial chaos.
