Argentina's new government has again delayed the devaluation of its currency, despite pressure from banks, foreign companies and an angry public.
The central bank said it would extend a long-standing ban on official foreign exchange trade today, again deferring breaking the tie between the peso and the US dollar.
In a move that could have uncertain consequences, the government said on Sunday it would devalue the currency by almost 30 per cent.
Economy Minister Mr Jorge Remes Lenicov told the nation in a televised address that it would be "difficult" to lift a partial freeze on bank deposits. He said details on a timetable for their return would not be announced for another 24 hours.
The Argentine public has been angered by the cap allowing them only 1,500 pesos in cash withdrawals from banks, but analysts say that easing the measures would create an instant run on deposits that could sink several banks. "It's not easy to take down the banking curbs, as nasty as that sounds," Mr Remes Lenicov said.
The extension of the partial banking holiday, in place since Mr Fernando de la Rua resigned as president on December 20th amid riots, came as the government was bombarded with advice and lobbying on its plan to end a four-year recession.
In a suggestion proposals made so far do not have US approval, US Treasury Secretary Mr Paul O'Neill urged Argentina to put quickly in place new economic measures that could be supported by the International Monetary Fund.