Cavallo bids to free Argentina from dollar "straightjacket"

MARKET NEWS

BUENOS AIRES -- A proposed plan to peg the Argentine peso to the euro as well as the dollar has received a mixed reception among Latin American analysts.

"People are right to be sceptical," Guillermo Estabanez, Latin America currency strategist at Bank of America in San Francisco told FX Week. "The idea is being sold as something that will stabilise the peso. But the fact is that he [Argentina's economy minister Domingo Cavallo] is trying to get rid of the straightjacket of the peso/dollar pa