The US dollar has returned to historic highs against the Argentine peso ahead of tomorrow’s decision by the Central Bank on interest rates.

The market is reportedly expecting a rate cut and demand for greenbacks has picked up, with the peso sliding 13 cents to 19.34 according to the average used by the downtown banks. The rate in question is the seven-day rate charged by the Central Bank to financial institutions and it is currently at 28.75 percent.

Given the market’s focus on the peso and interest rates, Interior Minister Rogelio Frigerio today said that there was “no chance” that there will be a run on the peso tomorrow after the rates are announced. “We have a floating, flexible exchange rate. We have to get used to that, that the dollar strengthens and weakens. There isn’t (going to be) a run. We’ve got record Central Bank reserves and it’s those reserves that are going to prevent any kind of shock or run” said Frigerio during an appearance on America TV. He instead suggested that the peso was going through a period of volatility rather than depreciation.

Since those targets were adjusted there have been rumors that Central Bank Governor Federico Sturzenegger could depart, rumors that have been consistently rejected by the government.

Following the inflation target adjustment the dollar strengthened further against the peso, with the appreciation in December amounting to half of the total gains by the dollar against the peso in 2017.