$Unique_ID{COW00182} $Pretitle{273} $Title{Argentina Glossary} $Subtitle{} $Author{Phyllis Greene Walker} $Affiliation{HQ, Department of the Army} $Subject{united states dollar rate exchange peso countries pesos international new} $Date{1987} $Log{} Country: Argentina Book: Argentina, A Country Study Author: Phyllis Greene Walker Affiliation: HQ, Department of the Army Date: 1987 Glossary austral (pl., australes; symbol is A) In June 1985 a new currency, the austral, was introduced, replacing the former currency, the Argentine peso. An austral was worth 1,000 Argentine pesos at a parity of 0.80 australes to the United States dollar. exchange rate-The exchange rate of the "new peso" depreciated from 3.8 to the United States dollar in 1970 to 36.6 in 1975. Between 1976 and 1978 the value of the peso depreciated from 140 to 795.8 per United States dollar. From December 1978 through May 1981 a sliding peg regime of preannounced daily exchange rate adjustments caused the value of the peso to fall from 1,007 to 3,284 per United States dollar. A dual exchange rate system consisting of a commercial and a financial rate was in effect from June through December 1981. During that period the respective rates averaged 5,083 and 5,748 pesos to the United States dollar. Between January and June 1982 the dual exchange market was unified. From July through October a dual exchange rate regime was reintroduced, and in November it was unified into a single exchange rate system. In 1982, during the period of the single exchange rate, it averaged 21,709 pesos per United States dollar. During the dual exchange rate regime interim, the commercial rate averaged 23,916 pesos per United States dollar, and the financial rate averaged 26,123 pesos. Between January and July 1983 the value of the peso depreciated from 51,433 to 94,489 per United States dollar. In August the "Argentine peso" was revalued upward against the "new peso." Between August and December the peso continued to depreciate from 10.53 to 21.36 per United States dollar. In 1984 a managed floating regime was implemented by the administration of Raul Alfonsin that was targeted to the rate of inflation. In 1984 the United States dollar was equivalent to 67.65 pesos. In June 1985 the government introduced the austral as the country's new currency. The increased worth of the austral against the Argentine peso readjusted the value of the new currency in comparison to the United States dollar. fiscal year (FY)-In the United States the fiscal year runs from October 1 of the previous calendar year to September 30 of the corresponding calendar year. The Argentine fiscal year is identical to the calendar year. GOU-Grupo Obra de Unificacion (Unification Task Force). This acronym has long been expanded incorrectly into Grupo de Oficiales Unidos (Group of United Officers). gross domestic product (GDP)-A value measure on the flow of domestic goods and services produced by an economy over a period, such as year. Only output values of goods for final consumption and investment are included because the values of primary and intermediate production are assumed to be included in final prices. GDP is sometimes aggregated and shown in market prices, meaning that indirect taxes and subsidies are included; when these have been eliminated, the result is GDP at factor cost. The word gross indicates that deductions for depreciation of physical assets have not been made. See also gross national product. gross national product (GNP)- Gross domestic product (GDP-q.v.) plus the net income or loss stemming from transactions with foreign countries. For Argentina, GNP is usually less than GDP because of factor payments abroad. GNP is the broadest measure of the output of goods and services by an economy. It can be calculated at market prices, which include indirect taxes and subsidies. Because indirect taxes and subsidies are only transfer payments, GNP is often calculated at factor cost by removing indirect taxes and subsidies. International Monetary Fund (IMF)-Established along with the World Bank (q.v.) in 1945, the IMF is a specialized agency affiliated with the United Nations and is responsible for stabilizing international exchange rates and payments. The main business of the IMF is the provision of loans to its members (including industrialized and developing countries) when they experience balance of payments difficulties. These loans frequently carry conditions that require substantial internal economic adjustments by the recipients, most of which are developing countries. leagues-A measure of distance that varies among different countries and at different periods of time. For the purpose of this text, one league was calculated to equal 4.5 kilometers. Peronism-An informal belief system relating to the ideas and influence of former president Juan Domingo Peron. peso-Owing to endemic inflation, a "new peso" worth 100 old pesos was introduced in January 1970 at a parity of 3.8 to the United States dollar. In mid-1983 the "Argentine peso" was introduced, which was worth 10,000 "new pesos" at a parity of 10.53 to the United States dollar. See also exchange rate. porteno-Resident of the port city of Buenos Aires; of or relating to Buenos Aires. World Bank-Informal name used to designate a group of three affiliated international institutions: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), and the International Finance Corporation (IFC). The primary purpose of the IBRD, established in 1945, is to provide loans to developing countries for productive projects. The IDA, a legally separate loan fund but administered by the staff of the IBRD, was created in 1960 to furnish credits to the poorest developing countries on much easier terms than those of conventional IBRD loans. The IFC, founded in 1956, supplements the activities of the IBRD through loans and assistance designated specifically to encourage the growth of productive private enterprises in the less developed countries. The president and certain senior officers of the IBRD hold the same positions in the IFC. The three institutions are owned by the governments of the countries that subscribe their capital. To participate in the World Bank group, member states must first belong to the International Monetary Fund (IMF-q.v.).