BUENOS AIRES, Jan 7: Embattled Argentines faced the bitter reality on Monday that the value of their currency had been deflated by almost one-third — one of several emergency measures undertaken by President Eduardo Duhalde to revive the moribund economy.

On Sunday the Argentine congress granted Duhalde sweeping powers for two years to revive the moribund economy, with legislation declaring “a public emergency in social, economic, administrative, financial and exchange rate legislation matters.”

Upon approval the government announced a dual exchange rate system, floating the peso but setting a fixed rate of 1.40 to the dollar for international transactions.

The measure ends a decade-old system tying the Argentine peso to the dollar at a one-to-one rate.

Economy Minister Jorge Remes Lenicov said the set rate eventually would be abolished. He also said currency markets, shuttered since December 21, would reopen on Wednesday.

The law was adopted only five days after Congress elected Duhalde for a two-year term, following the collapse of two governments in December amid violent protests.—AFP